The purpose of this study was to implement an effective online learning environment based on self-determination theory (SDT) and to develop eighteen main elements of the conceptual environment. The significant difference between SDT and other motivation theories is that SDT emphasizes on how to internalize motivation, and it explores the satisfaction for three innate needs (autonomy, competence, and relatedness) to remain intrinsic motivation and it turned out to prioritize the satisfaction for the need of autonomy. With the satisfaction of autonomy in online learning environment, learners can have better learner outcome, because an online learning tends to be a self-directed learning approach. Online learning environment is more corresponded with the innate need satisfaction concept of SDT than other motivation theories do. Therefore, building an SDT learning environment is helpful and meaningful to learners who prefer to do learning activities online, instead of in a concrete classroom. This study converged on eighteen crucial factors surrounding the three innate needs in SDT through literature review and current development of SDT in online education. The implications, limitations, and future research plans are presented in this paper.