The widespread adoption of videoconferencing in higher education has transformed digital learning, offering new opportunities for engagement while at the same time creating challenges related to student well-being. This underlying study examines these dual effects of webcam use in online education--its "light" side, which promotes social academic integration and engagement, and its "dark" side, which contributes to videoconferencing fatigue and potential cognitive overload. Applying the Online Engagement Framework, we used mediation analysis via Hayes' PROCESS macro and structural equation modeling in Mplus to examine how webcam use affects academic performance through these competing mechanisms. Using survey data from 1134 students at five European universities, we find that webcam use improves academic performance primarily by enhancing social academic integration. Unexpectedly, videoconferencing fatigue is also positively correlated with performance, suggesting that students develop compensatory cognitive strategies to maintain engagement despite fatigue. These findings highlight the need for balanced webcam policies that encourage social interaction while mitigating cognitive load. Rather than enforcing strict regulations, institutions should adopt flexible policies to optimize engagement without compromising well-being. By striking a balance between the light and dark sides of webcam use, universities can foster effective and inclusive digital learning environments that support both interaction and academic success.