Purpose: The study aimed to estimate the prevalence of subnormal stereoacuity in school children and to assess the factors associated with it. Methods: In this prospective cross-sectional study, a total of 2,376 school children without amblyopia and manifest squint were screened by the titmus fly test, Snellen chart, tests for heterophoria, anterior segment examination, and fundoscopy. Children with a manifest squint, amblyopia (best-corrected visual acuity [BCVA] <6/18), and history of ocular trauma or surgery, and one-eyed children were excluded. Cycloplegic refraction was done in children with uncorrected or undercorrected refractive errors, and stereoacuity was assessed again with spectacle correction. Results: The prevalence of normal stereoacuity by titmus fly test was 93.18% with correction of refractive errors. Girls had slightly better stereopsis compared with boys. The subnormal stereoacuity was significantly associated with refractive error ( P < 0.00001, significant at P < 0.05), unilateral refractive error ( P < 0.00001, significant at P < 0.05), bilateral refractive error ( P < 0.00001, significant at P < 0.05), anisometropia ( P < 0.00001, significant at P < 0.05), ametropia ( P < 0.00001, significant at P < 0.05), lower BCVA ( P < 0.00001, significant at P < 0.05), hyperopia ( P < 0.05, significant at P < 0.05), and heterophoria ( P = 0.014, significant at P < 0.05). The subnormal stereoacuity was positively correlated with the magnitude of refractive error of the eyes. Conclusion: This study underlines the significant impact of identification and correction of refractive errors and squints in school children. The measurement of stereoacuity will be of immense importance and must be included in the screening programs for children.