Fuzzy set theory and soft set theory and are now well-known methods for handling ambiguity and uncertainty in a wide range of fields. In this paper, we present the idea of a generalized fuzzy soft set to create a ranking algorithm for items in the universal set U, which is characterized by the set of parameters. This paper demonstrates a novel way to evaluate student performance using generalized fuzzy soft sets. The method we propose offers fuzzy membership degrees to students, thereby facilitating the estimation of their performance levels, by utilizing a certain parameter, and this method handles the inherent ambiguity and uncertainty included in real-world performance evaluations while providing a useful and efficient way to evaluate student performance.