The present study aimed at investigating the effect of peer feedback (PF) on EFL learners’ writing performance and writing anxiety. To this end, two intact classes including 48 intermediate EFL learners were selected and assigned into two groups of experimental and control (24 learners in each). This study had a quasi-experimental design including pre-test, treatment, and post-test to assess the students’ overall writing performance before and after the PF sessions. For data collection, the researchers used pre-test, post-test, 7 writing topics, and Cheng’s (2004) Second Language Writing Anxiety Inventory (SLWAI). The results of paired sample t-test and Mann-Whitney U Test revealed that the experimental group outperformed the control group due to the implementation of PF. Moreover, the researchers conducted Cheng’s SLWAI questionnaire at the end of the study. The findings indicated that the anxiety level of the experimental group receiving PF decreased to a significant extent. The implications are discussed in terms of writing instructors’ use of PF into writing classes to make the environment safer and more comfortable for the language learners to flourish their ideas.