The chapter tackles psychological dynamics of teacher and student interactions within an online class and the influence of technology-mediated communication. This has been inspired by the increasing numbers of learners in online education and the pressing need to refine, nurture, and grow more meaningful experiences that these interactions would have on learning and learner engagement. Descriptive and analytical review techniques are adopted for synthesizing published literature regarding different forms of communication both asynchronous and synchronous in fostering psychological relationships including emotional exchanges between teachers and students within virtual learning environments. This involves investigating the impact of various forms of communication on establishing psychological relationships involving emotional exchanges between teachers and students in virtual learning environments. It provides insights that while technology-mediated communication can create an atmosphere where interactions are polite due to equality created amongst participants, it may not necessarily be substantive. These findings are very important for improving engagement and welfare of learners in digital pedagogy which carry practical implications for training and development of e-teachers. This study adds to greater insight into the psychological impacts resulting from communication between teachers and students online, thus serving as a basis for further research in this new area.