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An average adolescent in Kerala is expected to concentrate on his/her academics and all other key aspects of healthy development like spiritual, psychological and social wellbeing are given scant attention. Middle class parents and teachers often disregard unacceptable behaviors of academically high performing children. Nevertheless as the young person completes education, the world demands competencies not taught in schools and when the critical time of acquisition of these core competencies are long past. In consequence young adults face serious interpersonal difficulties in both personal and professional life. The present study is an attempt to find out whether better academic performance contributes to happiness and increased self esteem among adolescents. A sample of 150 students (75 girls and 75 boys) between 13 to 18 years of age was selected for the study. Self Esteem Rating Scale (SERS), Depression – Happiness Scale (DHS) and recent annual report cards were used to collect quantitative data. The results indicate that there is no significant difference between academically high performing and low performing students in happiness or self esteem i.e. better academic performance does not ensure happiness or positive self esteem. There is positive correlation (r=0.54**) between self esteem and happiness. Happier children have better self esteem (t=5.27**) than depressed children. The results of this study reveal that happiness and self esteem are independent of academic performance and parents and educators must focus on holistic development not just on scoring well in exams.