The purpose of this study was to examine the economic and psychological impacts of divorce onrnthe academic achievement of students in Mekanisa Elementary School in Addis Ababa. Morernspecifically, the study tried to look into whether divorce affects students' psychosocial interactionrnin and around school as well as at home. It also made an attempt to examine whether the impactsrnaffect students' behavior and conduct and attitude towards school because these in turn mayrnaffect studentsâ€™ academic performance. So as to conduct this research, descriptive survey methodrnwas employed. The primary sources of data 200 students and parents that were selected usingrnsimple random sampling, available sampling and purposive sampling. The selected studentrnrespondents were enrolled in grades 3-6. Out of these, 50% were members of an intact familyrnwhile the remaining 50% were from divorced parents. Similarly, 50% of the parent respondentsrnwere intact while the remaining 50% were divorced parents. Questionnaires were the major datarngathering tools while document analysis was employed to enrich the data gathered throughrnquestionnaires. The collected data were analyzed quantitatively using percentage, frequency,rnmean and standard deviation. The findings of the study revealed that divorce has economic andrnpsychological impacts on students which affect their psychosocial interaction in the school and atrnhome with their parents. As a result, the study found out that studentsâ€™ behavior and conduct asrnwell as their attitude towards school is affected by the divorce of their parents. Most importantly,rnit affects the academic achievement of students from divorced families.rnKEYWORDS: divorce, academic achievement