Objectives: To assess the psychological factors in undergraduate dental students towards elearning in clinical skills education compared to traditional teaching methods and their relationshipwith performance during theCOVID-19 pandemic. Methods: Inthisstudy,survey conducted among 494undergraduate dentalstudentsof all four sessions from different dental universities within the Pakistan. Total 494 undergraduate dental students responded to a 28-question online survey to identify e- learning is more convenient and practicalthantraditional learning and tomeasure it 5- pointLikertScaleused. To measure level of psychological impact, Hamilton Anxiety Scale used due to e-learning among undergraduate dentalstudents. Results: The majority of undergraduate dental student’s responded e-learning is not convenient and practical than traditional learning system. The majority of undergraduate dentalstudentsreportedveryseverelevelof psychologicalimpactduetoe-learningand closing of institutions during COVID-19 pandemic. Results are statistically significant and analyzed on IBM SPSS version 23. There are 82% studentsresponded having problem with e-learning system and among them 58 % have very severe anxiety and 24% have severe anxiety. So the resultsshowsincreased percentageof anxietydue e-learning. Conclusion: Dental students expressed a higher level of comfort and effective learning in a recognizable, conventional classroom circumstance. Teaching with traditional system improvesstudent’scriticalthinkingskillsandformulatesopinionsorargumentsbyengaging in live discussions. This study reveals that students face challenges in using the e-learning resources because of incompetency in the IT skills, lack of motivation and access to proper internet. The most important issue identified by this study is maintaining an effective interaction with dental students in e-learning system of teaching to fill the gap between the teacher and students. There should be further flexibility workload and learning time to studentsto reduce the level of anxiety among thedentalstudents.