Online education and its methods have been challenged by researchers since its widespread adoption. Over the past few decades, technology, globalization, and business model innovation have transformed business. Objectives of the study were to assess the effects of online learning on the performance of business students, explore the challenges that hinder online learning of business students and to provide strategies to improve online learning of business students. This study may help online course developers and teachers conceive, develop, and deploy online learning methods. Support staff who help establish curriculum, support services, and professional development may benefit from developing ways to satisfy students' requirements. There was a quantitative analysis carried out. The study used a survey to collect data, and its design was descriptive in nature. A survey consisting close ended questions related to various study variables were administered to a sample of 250 business students of Private universities in Islamabad Pakistan. Data collection was done through personal visits of the researcher. To evaluate the data, descriptive statistics are used, such as the mean, standard deviation and T-test. Study found the positive perceptions of academic performance and skills development which suggest that online learning can effectively contribute to students' educational outcomes. Furthermore, study identified challenges, such as technical issues and motivational barriers, underscore the need for targeted interventions to improve the online learning experience. Fostering interactive online content is recommended by the study, as it correlates positively with critical thinking and collaboration, key skills that contribute to academic success.