Test anxiety seems like a benign problem to some people but it can be potentially serious when it leads to high level of distress and academic failure. The current research investigated whether academic self-efficacy and study habits could correlate with the extent of test anxiety among 342 Bible college students from five Bible colleges in Davao City. The method used for the study was descriptive-correlation design. The sample has been selected on the basis of total enumeration. The instruments used were adopted for academic self-efficacy, study habits, and test anxiety for data collection. Mean, standard deviation and Pearson r were used in analyzing and interpreting the data. Results of the study showed that students exhibited high level of academic self efficacy, demonstrated very positive study habits on their writing skills, moderately positive study habits on time management, test taking preparation skills, note- taking skills and reading skills, while moderately weak study habits in their math skills. The students also displayed low extent of test anxiety. Academic self-efficacy did not correlate with the test anxiety of students because their academic self-efficacy was rated high and the extent of their test anxiety was rated low. Whereas, the students’ study habits correlated with the extent of their test anxiety. Finally, based on the results of the study, a counseling program was proposed to help the students enhance their academic self-efficacy and study habits, and cope with test anxiety.