The purpose of the present study was to examine the effectiveness of a life skills training program taught as part of physical education lessons. Seventy three, seventh grade students were assigned either in an experimental or in a wait-list control replication group and received an abbreviated version of GOAL, a school-based intervention designed by Danish and colleagues to teach life skills. The program focused on setting goals, making plans for achieving goals and on positive thinking. Students were assessed on physical fitness tests, knowledge about life skills, and beliefs about effective use of life skills. Results showed gains and retention on physical fitness, knowledge and self-beliefs regarding goal setting. These results show that life skills training can be effectively implemented within a school physical education context. (Contains 2 tables.)