In this study, it is mainly focused on investigating the effect of question-embedded online interactive video environment on student achievement. A quasi-experimental design was development to compare the effectiveness of a question-embedded interactive video environment (QVE) and an interactive video environment without the question component (IVE). The data were collected from 318 teacher education students enrolled in an introduction level computer literacy course. Two different course materials were designed, developed and implemented to teach the same content and the same data collections instruments were used to assess student achievement. A computer knowledge evaluation form was utilized at the beginning and at the end of the study to examine about the students' computer literacy and knowledge. A quantitative design method was used to inquire the effect of question-embedded online video-based environment tool on student achievement. Two quizzes and two surveys were performed. The research results show that the question-embedded video-based environment tool promote the student learning, improve the amount of interaction of the student as well as time spent with the learning materials. Simply incorporating interactive video into e-learning environment may not always result with improving learning. However, QVE tool may lead to better learning outcomes and higher learner achievement.