COVID-19 has heavily influenced the mental health and academic performance of students all around the globe. The purpose of this study was to investigate the academic performance and psychological well-being of students in distance learning during the COVID-19 pandemic in Kosovo. The study was conducted through social media channels from October 2020 to December 2021. One thousand five hundred and eighty-eight (N=1588) undergraduate students from Public and Privat Higher Education Institutions in Kosovo were surveyed using a user-designed online questionnaire. Data were analyzed through the Social Science Package (SPSS), version 21.0. Correlation analysis and regression were used to explore the relationship between students' academic performance and psychological well-being during distance learning. From Pearson correlation analysis, it is seen that academic performance and psychological well-being have very high significant positive correlations (r= .836**; p =.000). Results highlight that academic performance is a strong predictor (69.9%) of students' psychological well-being. The current study's findings can provide policymakers and professionals in education with valuable information on academic performance and psychological well-being as a consequence of the COVID-19 pandemic.