This study aims to find out the relationship between challenges of accounting education and students' academic performance at Jose Rizal Memorial State University, Main Campus, Dapitan City, during the First Semester of Academic Year 2023-2024. It focuses on three (3) main challenges: institution, teacher, and the role of accounting research. A quantitative-correlational design was employed, surveying 233 students and 7 teachers. The collected data were analyzed using inferential statistics such as Mann-Whitney U Test, Kruskal-Wallis Test, and Pearson’s r Product-Moment Correlation, along with descriptive statistics. The results revealed that the challenges related to the institution, teacher, and role of accounting research were particularly much challenging for both students and teachers. A positive relationship was established between these challenges and students’ academic performance. Furthermore, a significant difference was found based on gender and year level, while age had no effect.  Despite facing these challenges, most students demonstrated excellent academic performance, with only a small proportion experiencing academic difficulties. Thus, to ensure continuous improvement of accounting education, the study underscores the urgent need for curriculum enhancement, innovative teaching strategies, stronger institutional support, and better access to updated learning resources. Addressing these challenges is crucial for sustaining and elevating student academic success.