A system and method for determining stress level of a person in real-time have been disclosed. In one aspect, the system captures physiological data associated to the person. In one embodiment, the physiological data may be captured by using a plurality of sensors attached at wrist or ankle or neck or waist or hip of the person, for a predetermined time interval. The plurality of sensors may include a wrist watch or a wristband or a textile material. The system further pre-processes the physiological data in order to extract one or more physiological parameters. In one aspect, the pre-processing may include performing an analysis on the physiological data. The system further determines the stress level of the person upon performing the statistical analysis on the one or more physiological parameters. According to another embodiment, a method for real time determination of stress level of the person has also been provided.