Objective: To compare the outcome of self-directed learning to the traditional learning in terms of academic performance in clinical setting by using diabetic ocular fundus findings among fourth year MBBS students. Study Design: Quasi-experimental study. Place and Duration of Study: Armed Forces institute of Ophthalmology, Rawalpindi Pakistan, from May to Nov 2019. Methodology: After taking consent, data was collected from 50 students through multiple choice questions-based pre-test and post-test by non probability convenient sampling. The data was analyzed using SPSS version 22.0. Results: Out of total students, 28 (56%) students were male and 22(44%) were females. Mean age was 22.15±3.26 years. Both the groups showed improvement in their academic performance as p-value <0.001, but SDL group showed more improvement as compared to the traditional learning group. Conclusion: Self directed learning is better as compared to the traditional teaching as it promotes conceptual learning so it is important to work on this issue.