A general model for motivational design of instruction is described and reviewed in terms of its application to E-learning contexts. Following a description of what is meant by E-learning environments and an overview of the four category model and design process known as the ARCS model, a variety of studies are summarized. The ARCS model is based on a synthesis of motivational concepts and a problem-solving approach to design, rather than the application of specific motivational solutions that are advocated without regard to the specific characteristics of a given situation. The first group of reviewed studies illustrates the results of testing the motivational design process in several different E-learning settings, in relation to learner self-regulation and in terms of the interaction of personality characteristics and motivational strategies. The second group of studies includes tests of the validity of a simplified motivational design process that has been used in diverse types of E-learning settings, including multiple countries and cultures. Overall, the results of these empirical studies have confirmed the validity of this model for the systematic design of motivationally enhanced instruction in E-learning settings with regard to lowering drop-out rates and other positive motivational outcomes.