School dropout in Peru is a highly significant phenomenon that directly affects the productivity and competitiveness of society. This research explores the relationship between school dropout and regional development in Peru in 2023, using data from the National Household Survey (ENAHO) and the Regional Competitiveness Index (INCORE). Analytical methods, including multiple linear regression, the regression equation-specific error test, and principal component analysis (PCA), were employed to examine how school dropout correlates with regional competitiveness. The results reveal a negative association between regional development and the school dropout rate. Regions with lower competitiveness, particularly in the jungle and high Andean areas, exhibit the highest dropout rates, while regions with high competitiveness, such as Moquegua and Arequipa, show significantly lower rates. These findings highlight the need for targeted public policies to improve educational quality and reduce regional inequalities, decrease school dropout, and promote balanced social and economic development throughout the country.