Quality of education in higher institutions can be affected by different factors. It partly rests on the learning environment created by teachers and the learning approach students are employing during their learning. The main purpose of this study is to examine the learning environment at Mizan Tepi University from students' perspective and their approach to learning, and evaluate its implication on quality education. The study is descriptive survey in its nature of quantitative approach. The Course Experience Questionnaire (CEQ) and Approaches and Study Skills Inventory for Students (ASSIST) are employed to measure the learning environment and approach to learning respectively. The study was targeted at six colleges of Mizan-Tepi University and randomly selected 382 students participated in the study. The following conclusions were derived from analysis made using correlation, cluster analysis, ANOVA and independent t-test. The learning environment/context as redefined in this study represents the teaching activities conducted in the classroom only. The whole picture of the response shows that the learning environment is conducive for students learning. However, the ANOVA result confirmed the existence of statistically significant difference among the six colleges on this variable. Gender is not a function to perceive the learning environment differently. A statistically significant and positive relationship was found between learning environment, deep approach and students' performance. It was confirmed that those students who perceived their learning context as conducive for their learning, adopted deep approach and have better achievement. But, those who conceived the learning environment as less conducive; adopted surface approach and have lower score. Finally, the result from cluster analysis shows 54% (n = 207) of students in the sample perceived their learning environment as supportive of their learning and adopted a desirable (high quality) learning approach while 46% (n = 175) perceived their learning environment as less conducive and adopted a low quality learning approach. Hence, it can be inferred that the teaching learning practice in this university is promising in the journey of ensuring quality education but it needs a great effort at all levels to make it to the standard.