In a Distance Education (DE) system, students must be equipped with seven skills of computer (ICDL) usage. This paper aims at investigating the effect of a DE system on the computer literacy of Master of Arts students at Tehran University. The design of this study is quasi-experimental. Pre-test and post-test were used in both control and experimental groups to undertake the study. The populations of this study were students, those who participated in traditional and online education at the University of Tehran. In order to gather required data, the researchers made questionnaires consisting of 59 items. To sum up, it can be stated that DE has a more significant impact on Concepts of IT, Internet and Presentation regarding computer literacy than traditional education. It can be stated that traditional education has a more significant impact on Concepts of File Management and Databases (Access).