Adjustment is an important psychological process that helps the students to balance personal needs with academic, social, and emotional demands. This conceptual study examines the comparative dimensions of life skills, high adjustment, and low adjustment among students in residential and non-residential schools. Drawing upon theories of social learning, emotional intelligence, and ecological systems, the paper explores how differing educational and social environments shape adaptive competencies, interpersonal behavior, and emotional regulation. The analysis emphasizes that while residential schooling promotes independence, discipline, and self-regulation, non-residential schooling often fosters familial attachment, social exposure, and community integration. The study concludes that both school types offer distinct developmental opportunities and challenges, suggesting a balanced approach integrating the best elements of both systems.