To test the effects of altering situational variables in stressful examinations on high test anxious and low test anxious undergraduates, mid-terms and final examinations were administered in two environmental settings: large lecture halls and small language laboratories. Mean test scores for high test anxious students in the language labs were significantly higher than mean scores of high test anxious students taking the same tests in large lecture halls. Marginally low anxious students not seated adjacent to high test anxious students had mean test scores significantly higher than marginally low anxious students adjacent to high test anxious students. High anxious and low anxious students working in standard lecture halls had significantly different test scores while high anxious and low anxious students in language labs had no significant differences. In a follow-up study, it was found that stress reducing techniques administered at the beginning of stressful examinations eliminate the usual negative correlation between high test anxious states and final grades. It was concluded that environmental and situational variables have important differential effects on high and low anxious students, and mask learning performance. (Author/JAC)