A concept pair is a pair of concepts that are fundamentally different but closely related. To develop a solid conceptual understanding in dynamics (a foundational engineering science course) and physics, students must understand the fundamental difference and relationship between two concepts that are included in each concept pair. However, all existing research in dynamics and physics education has been focused on the identification and repair of students' misunderstanding of individual concepts, but not concept pairs. The present research fills the gap of existing research by studying students' perceptions of dynamics concept pairs and correlation with their problem-solving performance in both particle and rigid-body dynamics. A total of 88 engineering undergraduate students participated in the present study. Students' perceptions were assessed using a 40-item instrument that included 20 dynamics concept pairs at fundamental Level One and higher-order Level Two. Students' problem-solving performance was assessed using four exams that included 66 dynamics problems. The coefficients of reliability (Cronbach's alpha) of assessment instruments vary between 0.69 and 0.93. The research findings from the present study show that students were not confident in their understanding of Level-Two concept pairs, especially the relationship between the Principle of Linear Impulse and Momentum and the Principle of Angular Impulse and Momentum, and the relationship between the Principle of Angular Impulse and Momentum and the Conservation of Angular Momentum. A statistically significant correlation exists between students' perceptions of Level-Two concept pairs and their problem-solving performance on both particle dynamics (r = 0.355, p less than 0.01) and rigid-body dynamics (r = 0.351, p less than 0.01). The research findings made from the present study imply that educational efforts should be focused on improving students' understanding of Level-Two dynamics concept pairs.