It deals with human behaviour as influenced by the physical characteristics of the environment they live in. The environmental psychologists study how the physical environment and the living conditions affect our emotions, inter­personal interactions and the behavioral dispositions.

They examine the influence of the environmental stressors like noise, pollution, crowding, heat, and humidity. In modern times, they focus on the effects of population explosion, disposal of waste matters, nuclear radiation, climatic changes, and the physical resources of the community. This discipline is assuming increasing significance in modern times.