The objective of this study was to analyze the gap in expected benefits and actual benefits of virtual classrooms used at the time of nationwide lockdown for the teaching-learning process for faculty members and students in higher education during the COVID-19 pandemic. A total of 893 responses have been used for this study. The overall mean of expected benefits, from 305 faculty members and 588 students of higher education institutes/colleges/universities, is higher than the overall mean of actual benefits and that difference value is 0.250055, with a Sig. (2-tailed) value of 0.036 which is less than 0.05 for faculty members and 0.3872827, with a Sig. (2-tailed) value of 0.000 which is less than 0.05 for students. We found that the network connectivity was the major challenge faced by the faculty members with a mean value of 3.68 followed by a 3.17 mean value for lack of professional environment at home, 3.03 for lack of teaching material at home, 2.92 for lack of personal computer/laptop. From students' responses, we found the lack of a professional environment at home with a mean value of 3.59 was the major challenge faced by the students followed by 3.57 for lack of teaching material at home (for lack of printed teaching- learning material at home), and 3.35 for network connectivity, 3.31 for lack of personal computer/laptop. The moderation effects of challenges between expected benefits and actual benefits is found significant for faculty and students both. The moderation effects of challenges between expected benefits and actual benefits is found significant for faculty ([beta]_ Expected Benefit_Challenges = -0.110, p < 0.05) and students ([beta]_ Expected Benefit_Challenges = -0.0.094, p < 0.05) both. The faculty members and students both were able to perceive higher actual benefits due to the low challenges of virtual classrooms. Further, the faculty members and students both were able to perceive lower actual benefits when challenges are more. The policymakers of higher education must work to resolve the issues and challenges of virtual classrooms to improve the effectiveness of the virtual classroom. The post-COVID higher education may require a continued focus on flexibility, adaptability, technology integration, student engagement, equity, and well-being. By prioritizing these areas, institutions can create a resilient and inclusive learning environment for their students and faculty in the post-pandemic era. the COVID-19 pandemic has highlighted the critical importance of organizational learning in responding to crises. Organizational scholars can contribute by advancing knowledge on effective learning patterns, documenting best practices, and incorporating these lessons into teaching and practice. By doing so, we can help organizations be better prepared for future crises, including pandemics, and ensure that the lessons learned are not forgotten. post-COVID higher education may require a continued focus on flexibility, adaptability, technology integration, student engagement, equity, and well-being. By prioritizing these areas, institutions can create a resilient and inclusive learning environment for their students and faculty in the post- pandemic era. It's important to note that effective online instruction often involves a combination of different learning theories, depending on the nature of the content, the goals of the instruction, and the characteristics of the learners. Online instructors should consider how these theories can inform their instructional design and delivery to create meaningful and effective online learning experiences. learning theories have a significant impact on the performance of higher education institutes in the context of online education. By aligning instructional strategies, course design, assessments, feedback, and learner support with learning theories, higher education institutes can optimize their online education programs and enhance student performance. the pandemic has necessitated the use of various teaching strategies in higher education institutions to adapt to remote and online learning. Blended learning, technology-enhanced instruction, student-centered approaches, flexible assessments, active learning strategies, and social-emotional support are some of the most appropriate teaching strategies that have been used during the pandemic to support student learning and engagement. It is important for instructors to continually assess and adapt their teaching strategies based on student needs and feedback to ensure effective learning outcomes.