Background: To provoke engagement and higher levels of learning and improving academic self-concept, nurse educators are exploring newer interactive methods of teaching. Nursing educators can create this opportunity by providing diverse settings and activities for interactive learning that is preferred by today's students. Aim: The study aimed to determine the effect of interactive learning environment on nursing students' engagement and academic self-concept. Hypothesis: The students who are instructed through interactive learning environment exhibit more engagement and higher academic self-concept than those who are not. Design: Aquasi-experimental design was used in the current study. Setting: This study was conducted at Faculty of Nursing Alexandria University. Sample: A convenience sampling of 120 nursing students comprised the study subjects. Results: a statistically significant difference, regarding the engagement and the academic self-concept, was found in the favor of the study group. Moreover, a correlation was found between classroom engagement and academic self-concept. Conclusion: The results of the present study support theoretical model which emphasizes the effect of interactive learning environment on students' classroom engagement as well as their academic self-concept. Recommendation: It is necessary to work further as a teacher in developing interactive learning strategies, to improve students' abilities to be more active learners in their educational context and to improve their classroom engagement and academic self-concept.