As smartphones have become effective substitutes for laptops and desktops, smartphone users have been increasing at astronomical proportions. Smartphones have emerged as a valuable tool to communicate with others and constantly keep themselves abreast of what is happening in the world. This may result in a behavioral change called the 'fear of missing out' (FOMO), a phenomenon labeled as a form of social anxiety. The present study aims to investigate the consequences of FOMO on smartphone addiction (SPA) and students' academic performance in educational institutions. A conceptual model was developed, and hypotheses were tested by collecting data from 98 students from an educational institution in the southern part of India. The regression results of Hayes's PROCESS macros indicate: (i) FOMO is (a) negatively associated with academic performance, and (b) positively associated with SPA, (ii) SPA is negatively related to academic performance, (iii) Positive Affect (PA) positively predicts academic performance, (iv) Negative Affect (NA) negatively predicts academic performance. The results also support smartphone obstacles moderating the relationship between SPA and academic performance. The three-way interaction between SPA, smartphone obstacles, and PA influencing academic performance is supported in this study. The implications for theory and practice are discussed.