Abstract There is a great importance of peer feedback in improving learning experiences for students. However, the ability to develop and produce written text is a major skill that the students must develop. This quasi – experimental study aimed at finding out the effect of using peer feedback on EFL students writing performance and writing anxiety. From the four sections at Ambiky General Secondary and Preparatory School from grade 11students, two sections were selected using lottery system for a sample. The subjects of the study were assigned as control and experimental groups by the researcher as intact groups. Then one section of 54 grade 11 intact (naturally existing ) for experimental group and 51 students for control group students used for a sample at Ambiky General secondary and preparatory school were taken as participants of the study. The data were collected using document analysis and Second language Writing Anxiety Inventory (SLWAI). For the data which were gathered using pre-test post-test was used as a statistical tool of analysis using inferential statistics (paired samples t- test and independent samples t- test) in SPSS. Five writing activities were prepared and administered before and after the intervention to measure students‟ writing performance and wring anxiety. Two writing activities (pre-test tasks) were given for both groups before the intervention has been takes placed. After two month intervention, the three post-test activities were administered. The Likert Scale and Second Language Writing Anxiety Inventory were prepared to measure the appropriateness, effectiveness, feasibility of the study. Finally, the data obtained items were analyzed quantitatively. The results of the study showed that there is no difference in the improvements of the two groups writing performances. The result of students‟ writing anxiety showed significant improvement. Moreover, some writing features (punctuation, capitalization, content, spelling and grammar) significantly improved as a result of peer feedback intervention. However, other writing features (organization, coherence, vocabulary) did not show significant difference in pretest and post test results. Students‟ involvement in giving and receiving comments to and from their peers was the least compared to other improved writing features. Based on the findings, it is suggested that peer feedback should be used primarily to encourage students‟ to rewrite their texts in learning writing. Writing teachers should also use peer feedback in helping students to improve their writing in the areas of spelling, mechanics and grammar. Teachers are also advised to use this feedback to deal with students‟ writing anxiety in writing. Finally, as this study is limited to one school, it appears to be difficult to draw generalizations about the findings of the study. Hence, further research is highly recommended to further investigate the area.