The present study aimed at investigating the difference in performance on three problem solving tasks in terms of fear of success and induced motivation of 80 university females (40 with rural and 40 with urban background) assigned to meet the requirements of 2 x 2 x 2 between group factorial design. The three problems were solved with a time limit, and then the scores combined to obtain a composite index. The data were analysed by ANOVA. The findings are: (1) University females with urban background are significantly better than their rural counterparts in their composite performance index. (2) Low fear of success group is superior in its problem solving than high fear of success group. (3) A highly significant residential background x fear of success x instructional motivation interaction reveals that induced motivation seems to be a hinderance in the performance of rural as well as urban women at high fear of success level as motivational instructions might have further added to success anxiety. At low fear of success level motivation boosts the performance of urban women more as compared to rural women- contrary to expectations.