Background: The outbreak of the deadly disease COVID-19 has shaken the entire world. The pandemic has resulted in a global lockdown affecting all areas of life, including medical education. This has impeded the traditional way of teaching and learning activities and forced educational institutions such as medical universities to shift rapidly to distance and online learning. Aims and Objectives: The aim was to find out the impact of COVID-19 and the perception of undergraduate students of B.P. Koirala Institute of Health Sciences (BPKIHS) of learning dermatology through online means. Methods: A cross-sectional study was conducted with a self-administered online questionnaire. The inclusion criteria were all MBBS third and fourth years students of BPKIHS willing to participate in the study. Result: A total of 151 participants agreed to complete the online survey questionnaire. The overall attitude toward online education was positive. The majority of students agreed that online learning material should be of high quality for online education (66.2%) and that online learning will bring new opportunities for organizing teaching and learning (62.3%). Zoom and Dudal were the most common online tools used by students. The geographic location, lack of past experience in using online tools, and communication barriers such as a poor Internet connection and frequent electricity cutoffs were identified by students as the main barriers to online education. Conclusion: Although the COVID-19 pandemic culminated in the lockdown of medical universities, it provided opportunities for bringing innovations into effect. Such large-scale studies are missing in developing countries such as Nepal, thus further research is needed to explore these possibilities nationwide.