Using data from the survey of the Ministry of Education, Nepal-2005 for School Leaving Certificate Exam, this paper analyzes public and private school performance in Nepal. The ordinary least square estimates suggest that private school students perform better than public school students. However, the problem of self-selection bias arises, as private school students can fundamentally differ from public school students. This study adopts the propensity score matching technique to account for this problem. The results, even after using the propensity score matching technique, suggest a positive private school effect for the data used in this study.