Existing knowledge on remote working can be questioned in an extraordinary pandemic context. We conducted a mixed‐methods investigation to explore the challenges experienced by remote workers at this time, as well as what virtual work characteristics and individual differences affect these challenges. In Study 1, from semi‐structured interviews with Chinese employees working from home in the early days of the pandemic, we identified four key remote work challenges (work‐home interference, ineffective communication, procrastination, and loneliness), as well as four virtual work characteristics that affected the experience of these challenges (social support, job autonomy, monitoring, and workload) and one key individual difference factor (workers’ self‐discipline). In Study 2, using survey data from 522 employees working at home during the pandemic, we found that virtual work characteristics linked to worker's performance and well‐being via the experienced challenges. Specifically, social support was positively correlated with lower levels of all remote working challenges; job autonomy negatively related to loneliness; workload and monitoring both linked to higher work‐home interference; and workload additionally linked to lower procrastination. Self‐discipline was a significant moderator of several of these relationships. We discuss the implications of our research for the pandemic and beyond.