Online learning in higher education institutions is becoming evident as they strive to sustain an appropriate educational environment. The COVID-19 epidemic raised concerns regarding student engagement, as many educators faced challenges in transitioning to delivering classes online. This paper aims to evaluate the influence of online learning on students' engagement and identify effective strategies that can promote active participation among learners in online classrooms within Malaysian higher education institutions. The participants in this study consist of various public and private universities in Malaysia, chosen based on the Times World University Ranking 2021. 389 questionnaires were distributed through simple random samplings to respondents who expressed their willingness to participate in the survey. The results demonstrated a significant connection between online learning and student engagement, both essential for the effectiveness of the online classroom setting. In the interim, the study suggests several innovative approaches, such as You Talk, Resource Pool, and Classroom Meet, to promote active student engagement through online activities. The findings will significantly impact the Ministry of Higher Education and university management in implementing reforms in policies and resources aimed at improving student engagement.