Purpose: This study aims to investigate and assess the first experience of faculty members and students with distance learning implemented at Al Ain University (AAU) to contain the spread of Coronavirus or COVID-19. The paper attempted to understand faculty and students' satisfaction with institutional readiness for distance learning and perception towards opportunities and challenges of distance learning. Design/methodology/approach: The study is based on data collected in March 2020 through an online survey questionnaire from the participants (students = 445, faculty members = 139). The unified theory of acceptance and use of technology (UTAUT) was used in formulating a conceptual framework. The collected data were analysed using several statistical techniques and partial least square structural equation modelling, to test and verify hypotheses. Findings: The study found that, although faculty members and students expressed high satisfaction with the institutional readiness for distance learning and believed in its opportunities and advantages, they expressed concerns about the challenges facing distance learning. Findings of the study indicated a relationship between the status or college of the participant and perceived opportunities and advantages of distance learning. Hypotheses testing supported the study framework and UTAUT theory by identifying and confirming the impact of perceived opportunities of distance learning on satisfaction with the institutional readiness for distance learning. Originality/value: The study suggested that non-distance learning institutions should keep offering courses through distance learning to prevent any shortcomings in the future.