The social quality theory emerged during the last decade of the20th century.The theory assesses the evolution and growth of human societies by measuring the quality of life in everyday social context.Europe,being the birthplace of the theory,has been the source of the core indicators of social quality.However,the indicators of social quality have been modified for the purpose of their applicability to Asian societies,as they are different in so many aspects than the European societies.Pakistans development as a desirable society,throughout its history,has been marred by its economic and political instability.In addition,terrorism has left an indelible scar on the social life in Pakistan.　　The Khyber Pakhtunkhwa province has suffered the most in this regard.Social life has been deeply affected by the war against terror.Peshawar,being the capital city of the province,has been subject to countless unfortunate incidents,which has taken a great toll on the objective as well as the subjective well-being of the common man.The society in Peshawar is highly stratified in tenns of subjective well-being and social quality.Individuals have different social identities that are instrumental in altering the subjective social quality from the objective social quality.　　This study investigates the difference between objective and subjective social quality.In addition,the study measures the existence of social quality in the area and examines the effects of social identity variables on it.The main objectives that guided the study were;the measurement of the difference between overall and perceived social quality in Peshawar using the social quality model and its indicators.A survey based on the European Social Survey was conducted in the city adhering to equitable participation of the citizen.The questionnaire focused on social quality indicators compiled by the Social Quality Network.The data collected was then analyzed using various statistical tools to arrive at results from the survey.　　Our results suggest that the social construction of the society played a very important role in determining the perceived social quality of life in Peshawar.The results further implied that the society was more inclusive and cohesive and less socio-economically secure and socially empowered.Income and education had a significant effect on the level of social inclusivity.Similarly,age and gender had a more evident impact on social empowerment.The Socio-economic domain remained somewhat constant across these factors.Taken together,the results paint a picture of a delicately poised society where there is a significant room for improvement in all the domains of social quality.