Background: The purpose of the study was to assess the perception of nursing students towards their learning environment and to identify their perceived academic stress. Method: A cross sectional study was performed on 121 nursing students using self administered questionnaire. Result: The study revealed that students have favorable perception towards their environment except few areas which require modification. 62.81% of students reported moderate level of stress. There was a strong negative correlation r = - 0.579 (p=0.00) found between perception towards learning environment and perceived academic stress. Among the demographic variables, a significant association was found between Gender (2 5.193, p=0.023) and perception towards learning environment. Type of family (2 11.161, p= 0.025) and economic support (2 8.988, p=0.011) were found significantly associated with perceived academic stress. Conclusion: Measures can be taken, such as training programme for clinical instructors to provide a good and conducive learning environment where students enjoy their learning.