Due to the advances in internet communications technology (ICT), the use of digital devices, such as laptops, tablets, or smartphones, in the educational setting has become very common among young people. A considerable body of research has shown that there are adverse effects of in-class internet usage, termed “cyberloafing” on students’ academic performance, making it a rising concern for scholars. Within this context, the present study examines cyberloafing as a multidimensional construct and studies the mediating effects of psychological wellbeing and social media learning between cyberloafing behaviour and cyberloafing activities of students. Using an online survey, data was collected from 240 undergraduate and graduate students at a private university in India. The data were analyzed using structural equation modelling and mediation analysis. The results indicate that cyberloafing behaviour negatively influences student’s psychological wellbeing, whereas psychological wellbeing is positively related to cyberloafing activities. It was also found that, on one hand, cyberloafing behaviour negatively influences social media learning, whereas social media learning did not have any effect on cyberloafing activities in students. This study highlights that it is crucial for educators and course instructors to incorporate appropriate practices and interventions to manage the misuse of the internet through cyberloafing in classrooms.