The paper has analyzed the effect of online learning and traditional mode of learning on students’ engagement in learning. A sample of 50 students studying psychology in their B.A course was selected randomly from one college in Chandigarh. An online learning course in selected topics of psychology was developed. The experimental group of the study was exposed through online learning mode for 15 days. Likewise, control group was taught the same content by traditional learning for 15 days as well. Both the groups were controlled on same instructional design model such as ADDIE (analysis, design, development, implementation and evaluation), same number of participants, same content was employed for teaching and they were both matched on pre-test of engagement in learning. The students’ post-test scores on engagement in learning was analyzed using t-test to determine if there were significant differences between the two groups. Results indicated significant differences between online learning and traditional learning on students’ engagement in learning as students taught by online learning were more engaged in learning than students who were taught by traditional learning. It indicates that learning through online does enhance students’ engagement in learning.