In this world of technology, smart phone has become a vital part in everyone’s life. This study aims to focus on the relationship between smartphone addiction and academic performance of students in higher education. Variables such as use of social networking sites, overuse of smart phone and Academic Performance (Grade Point Average and Time Management skills) were part of this research. Self-administered questionnaire was used to collect data from 360 students of two private universities in Rawalpindi, Pakistan. The target age group was 19-24 studying in Bachelors degree program. Data was analyzed through SPSS. Pearson correlation and multiple linear regression tests were applied. Results reveal that there is a negative relationship between smartphone addiction and academic performance. Moreover, it has been proved that students with good time management skills achieve high grades/GPAs than those who have poor time management skills due to involvement in different social networks (media) such as Facebook, Twitter and Instagram etc. It is suggested that students should spend their time wisely and use their smartphones for educational purposes. However, students need training, counseling and close monitoring to get benefits through smartphones’ use.