Observational learning is a process in which a person observes and models another person’s behavior, emotional expressions, and attitudes. It is a method in which an individual observes the activities of another individual and learns from them. We can take an example: if a student watches someone drawing something, the student will observe it and try to make the same drawing, he/she will observe the other person and learn something new. It is a great method to learn new things. This method should be used in schools for improving the academic performance of students. There should be certain activities where students are required to observe some activity and learn how to do it on their own without any help. There are mainly four stages of observational learning: motivation, production, retention, and attention. When a student starts paying attention to a topic it does not mean they will learn it properly, it is just the first step in this type of learning. A good observer is generally smart, the reason is they do not commit the same mistake as the other person. Students should have observing skills, they should observe everything going on in their environment. It helps students to learn new things daily, improve academic performance and prevent themselves from committing mistakes that others have committed in the same situation. Observational learning is very important in schools, it should be promoted by including activities that require attention.