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This study was designed to estimate the relationship of peer victimization, psychological distress and self-esteem among teenagers. The sample consisted of 233 teenager’s age range from 11 to 20 years. Data was collected from Kot Addu and Multan District. Convenient Sampling method was used to collect the data. Illinois Bully scale developed by (Espelage, D. L. & Holt, 2001) consisted of 18 items was used to check the rate of Peer Victimization. A 20 item state Self Esteem scale developed by (Heatherton, T. F. & Polivy, 1991) was taken to check the level of self-esteem among teenagers. Another 10 item Kessler psychological Distress scale (K10) developed by (Kessler & Mroczek, 1992) was used to check the level of distress among teenagers. The results were analyzed through SPSS. The findings of the study show that peer victimization leads to psychological distress and victimized teenagers have low level of self-esteem. It was also found that rate of peer victimization is high among school going teenagers as compared to college or university. Result further exposed that there is no significance difference in peer victimization on the basis of demographic variables like age group, gender, parent’s qualification, no of siblings and family system.