This research examines the Role of ICT in Distance Education(A Case Study of AIOU).It is a universally admitted fact that use of ICT in distance education has enhanced learning process in all aspects of academic and administrative elements of an education system. This research was theoretically supported by two important theories of Mass Communication: Theory of Uses and Gratification and Knowledge Gap Hypothesis. The researcher used probability sampling method and respondents were chosen from all four faculties of Allama Iqbal Open University.Cluster sampling technique was used to collect data from respondents. There were four clusters of sample comprising of Faculty of Social Sciences & Humanities, Faculty of Science, Faculty of Education, and Faculty of Arabic and Islamic Studies. Out of 367, a majority 334 (91%) questionnaire were completely filled in and returned by the respondents. Results of the research indicate that majority of the respondents belong to faculty of Social Sciences and Humanities (36.8%). While the lowest number of respondents were Faculty of Arabic and Islamic Studies (15.3%). Results show that respondents have different ICT devices from Desktop to Scanner. But majority of respondents owned laptop (63.8%). It was revealed that (52.1%) of the respondents were using mobile internet. Being a part of distance education majority of respondents (73.8%) used home network as a place of internet use. It was also encouraging that most of the students (74.9%) were using computer for educational purposes. As far as purpose of internet usage is concerned it was found there was greater diversity in internet usage but most of the respondents (83.5%) were found using internet for education related purposes. While analysing the task related to ICT usage of AIOU website most of respondents were found (70.4%). Results from the inferential statistics, Levene‟s Test and Independent Sample T-Test used for hypotheses testing revealed that rural students find ICT more helpful than urban ones x with the mean value for urban 3.5 and rural 3.7. It was also found that students with rural back ground had more reliance (3.4828 mean value) on ICT than the urban (3.4085). It was found that urban students find ICT more relevant (mean value3.5179) for their studies as compared with the rural students(mean value3.4842). Students with urban background found greater interest in ICT(3.55 mean value) than their rural fellows (mean value 3.4). Urban students experienced more limitations (3.31 mean value) with ICT usage than the students with the rural back ground (mean value 3.30). It was further pointed out that the students of urban areas are more gratified (3.43 mean value) with ICT usage than the rural students (3.25 mean value). It was analysed that Students having urban background are more motivated in ICT usage than rural ones. It was shown that contrary to urban Students having rural background were making more use of ICT. When preference for ICT usage was checked it was found that urban students prefer using ICT more than rural ones. Overall differences were observed between rural and urban background students regarding ICT and its usage. There are some limitations of this study which are also insights for future research studies in the area of Role of ICT in Distance Education are also provided by this study.