Disciplinary problems among school children in most part of the world have become a major topic of discussion among the community. Frequently mass media keep on giving report about the matters. One of the disciplinary problems is vandalism. Vandalism in schools had created great loss to the government in terms of money. Breaking of desk, chairs, writing and damaging notice board, kicking and damaging doors, windows, fans, lights, toilet, throwing of chairs and desk and other properties belonging to the school, teachers, staffs and their peers. The government is looking at the matter seriously. In order to build a strong and stable nation, the younger generation should be equipped with a strong bond of moral values. This study was to evaluate the effectiveness of The Penalty System Program (PSP) which was implemented in the state of Selangor Malaysia in handling the problems of vandalism in schools. The study was carried out in a secondary school in the district of Ampang,  Selangor, Malaysia.