Contextual Teaching and Learning (CTL) focuses on the idea that learners construct knowledge rather than receive knowledge. Therefore, CTL is usually considered as a design-based learning method. Design-based education (DBE) integrates stages of self-regulated learning and simultaneous processes, with an emphasis on creating a sustainable approach to teaching and learning. When organizing educational activities, techniques, assessment, support, and feedback, it is crucial to consider the stages involved in establishing a sustainable learning environment or DBE learning. This study is a case study and action research that focuses on quantitative and qualitative analysis. It aims to investigate the use of CTL E-learning activities in teaching a psychology course in a private college, and how this teaching pedagogy impacts student’s academic performance, understanding of abstract and psychological concepts, critical thinking, and creativity. The study also analyzes the effectiveness of an E-book as a reflective tool in the learning process. Specific data is collected from one course of psychology with 12 participants at a private college in Muscat, Oman. The results of both the quantitative and qualitative analysis indicate a positive correlation between the use of E-books and academic performance of the students. The findings also show that applying CTL as a sustainable pedagogy while using DBE, which is the E-book as a reflective tool, has a significant impact on the learner’s understanding of psychological terms and concepts as well as their critical and creative thinking.