The study was planned to explore the challenges faced by distance learners during paperless assignment process. This initiative was introduced a couple of years ago at a distance learning university in Pakistan. Target population comprised on distance learners of M. Phil Education and MBA (col) sessions 2017 to 2019 programs running online through Learning Management System (LMS). Total Population Sampling (TPS) technique was followed and all distance learners of both programs were engaged. It was mixed-method research comprising both structured and open-ended information. The instruments employed were two questionnaires: one on Likert Scale and the other was open-ended. The reliability coefficient was 0.71, and the open-ended questionnaire was validated through six subject experts. The structured questionnaire was sent to all 563 students and in response 132 students filled out the online questionnaire. Quantitative data was analyzed through descriptive statistics while qualitative data was analyzed through NVivo software. The main problems highlighted were study material relevance and late delivery, understanding and processing of paperless assignments, access and skills of ICT, financial constraints, evaluation of paperless assignments, and instructors' feedback. Students suggested that textbooks should be revised and delivered in time, connectivity issues should be resolved, free internet packages should be introduced, LMS training should be conducted, in time feedback in descriptive form by instructors must be provided to the distance learners.