The purpose of this paper is to examine the construct of self-efficacy in the context of online learning environments. Self-efficacy is defined as "beliefs in one's capabilities to organize and execute the courses of action required to produce given attainments" (Bandura, [1997], p. 3). Traditionally, the four main sources of self-efficacy development are enactive master experiences, vicarious experiences, verbal persuasion, and physiological and affective state (Bandura, [1997]). In this paper, self-efficacy is introduced in general. Research related to academic self-efficacy and self-efficacy in online learning environments is reviewed. The study of self-efficacy in online learning environments is new relative to the construct of self-efficacy. Research on self-efficacy and the use of computers in instructional situations has been included to broaden the literature base. The development of self-efficacy beliefs in online environments is highlighted as well as self-efficacy assessment issues. Possible areas of self-efficacy research in online environments are suggested, including pedagogical agents, persuasive feedback, and self-efficacy assessment.