Problems are part of our lives. It causes stress, tension, emotional instability, and physical strain to us. It is very essential to deal with our problems before they deal with our happiness. Problem solving skill is an irreplaceable life skill and it is cognitive or thinking activity essential to our day-to-day lives. In order to lead a satisfied life, the skill of problem solving is essential. The problem solving skill requires some abstract thinking to arrive at a clear solution. This skill is not only a math skill, but also a skill used in every subject and in all aspects of life. Problem-solving skill is very crucial one whether in the field of teaching mathematics or in the daily life of any individual. This competency reflects two main categories of activities, namely modelling and applying, the transition from reality to mathematics, and the transition back from mathematics to reality. This study aims at investigating how problem solving skill in mathematics can be applied to real life and problem solving skill in reality can be modeled in mathematics. Thus, the significance of the current study lies in that, it attempts to reveal how problem solving ability helps individuals or group to meet their challenges in mathematics learning environment and their real life situations. This paper explores how mathematics education is able to solve problem in real life. Also there is a need for teachers to establish a proper teaching plan involving problem solving ability suitable for students' learning process. Thus it addresses problems in mathematics education and real life and helps to foster problem-solving skills in the context of mathematics leaning and real-life.