The study was conducted and anchored on the concept of Secker (2009) that many students who earn a high school diploma do not have the knowledge and skills needed to succeed in college. This study aimed to determine the significant relationship between the readiness of students in college algebra and their academic grades. Descriptive correlation survey was used in this study. It focuses on the present condition with the purpose of finding new truth and it is valuable in providing facts on which specific judgments may be based. The study was conducted in the University of Southeastern Philippines College of Governance and Business to 180 studentrespondents. Mean, t test for independent samples, Pearson Product Moment Correlation and Linear Regression were the statistical tools used for the data analysis. The findings of the study are as follows: The level of readiness of students in college algebra is low with the mean rating of 2.48. The academic grade of students in college algebra was low with the mean rating of 2.86. There was a significant relationship between the level of readiness of students in college algebra and their academic grades as revealed in the r value of -0.58 with the p-value of .000. The readiness of students in college algebra has a significant influence on their academic grade as reflected in the F-value of 12.78 with the p-value of .000 which is lesser than .05 level of significance implying the increase in readiness of students would mean the increase in their academic grades.