Technology offers tremendous opportunities for increasing the effectiveness and efficiency of education. Students, faculty and administrators now use technology extensively in their daily activities and have become technologically literate. The trend of using   e-learning as learning and teaching tool is now rapidly expanding into education. Many educators and researchers have high hopes for e-learning, believing that it would provide more access to information and communication, and would ultimately lead to a new revolution in education. This paper focuses on impact of e-learning environment on the teacher effectiveness, with reference to Personal effectiveness, Teaching skill and Research and academic activities. This study intends to find the relationship between the teacher effectiveness and the selected background variables, to identify the background variables which are contributing to the impact of e-learning on teacher effectiveness and to estimate the extent of the contribution of the background variables to the impact of e-learning on teacher effectiveness. In order to measure this researcher developed a research tool to measure the teacher effectiveness. The tool was administered to 250 teachers serving in colleges of engineering and technology and university departments. The finding of the study reveals that the teacher effectiveness of the teachers on the whole is high with the assistance of e-learning environment.