The Malaysia Education Blueprint 2015-2025 (Higher Education) was published recently. One of shift is globalised online learning. Therefore, Polytechnics had taken the first step in the use of e-learning system by using flipped classroom method. The purpose of this study is to analyse the effects of using online video lecture on student interaction, student engagement and learning outcome in flipped classroom environment. This study has been conducted on 32 semester one Polytechnic Tuanku Sultanah Bahiyah students. A questionnaire was distributed and analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings shows that the learning outcome dimension has a practical value of R[superscript 2] = 0.813. Thus, research model proven that using online video lecturer significantly predicted learning outcome. The findings also indicate that student interaction and student engagement not mediated the relationship between online video lecture and learning outcome. Practically, the findings of this study revealed the importance of developing interactive online video lecture and active learning activities in enhance student interaction and student engagement.