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This paper examined psychological capital in two types of organizations: public and private schools. This study explained how psychological capital effects organizational commitment and organizational citizenship behavior in public and private schools. The sample includes 150 employees, 75 each from two types of schools. Various dimensions of Psychological Capital were measured by scale developed by Luthan, Youssef & Avolio. Organizational Commitment was measured by Allen & Meyer’s scale and Organizational Citizenship Behavior by a scale developed by Podsakoff. The result obtained from Pearson correlation and stepwise multiple regressions and it showed that all the dimensions of psychological capital were significantly different in the both the kind of schools. Regression analyses showed that psychological capital as a whole can predict organizational commitment and organizational citizenship behavior in both kinds of schools. The theoretical framework proposed in the paper on Psychological Capital would help the researchers and management people to understand the impact of Psychological Capital on organizational commitment and organizational citizenship behavior. It also supports the view of previous researchers that Psychological Capital is a significant positive organizational behavior variable, as it is capable of performance improvement and is open to development.