Technological innovation has become a common phenomenon. In everyday life, technology plays an ever-increasing role; innovation such as cellular telephones,echnological innovation has become a common phenomenon. In everyday life, technology plays an ever-increasing role; innovation such as cellular telephones,laptops, palmtops, tablets are being quickly incorporated into daily use and are added to society’s vocabulary. Information are available in greater quantities than ever before, and the means to access and share it with others is unprecedented. The pace of sophisticated technological change is so rapid, however, little is known about its effect on the student community it pervades. The classroom is a microcosm of society, and technology has an increasing impact on schools throughout the country. Little is known about how technology affects the school communities. The studies suggest that technology has both a positive and negative effect on student’s outcome when compared totraditional instructions. This paper focuses on the positive psychological effects of technology on students. Technology can affect the following psychological aspects in students.Keywords: Peer group, Collaboration, Photoshop etc.