This research utilised the action research design to explore the use of Moodle by lecturers and students in three cycles. The qualitative and mixed methods methodologies used in cycles 0 and 1 respectively, revealed that students’ use was influenced by how lecturers used the platform. Cycle 2, therefore, explored how lecturers delivered courses through Moodle and how students perceived interaction with the instructor, content, and peers and the extent to which these influenced student satisfaction. The research questions examined how lecturers used Moodle to foster interaction between learner-content, learner-instructor, and learner-learner; students’ perceptions regarding interaction between learner-content, learner-instructor, and learner-learner; the relationship between learner-interface interaction and a) learner-content, b) learner-instructor, c) learner-learner interaction and d) student satisfaction; whether perceived ease of use, perceived usefulness, computer self-efficacy, sex, age, faculty, and ethnicity predicted a) learner-content, b) learner-instructor, and c) learner-learner interaction; and the extent to which learner-content, learner-instructor, and learner-learner interaction via Moodle influenced student satisfaction. The concurrent mixed method action research design was utilised with qualitative data collected from nine lecturers via interviews and quantitative data collected from 86 students via surveys. Thematic analysis was used to analyse the qualitative data while Pearson correlations and multiple regressions were used to analyse the quantitative data. The findings indicated that perceived usefulness and learner-instructor interaction were positive significant predictors of student satisfaction. The study also revealed that lecturers found Moodle useful for interaction but were challenged to effectively foster engagement with students, content, and their peers, at all times. Lecturers experienced several challenges including engaging students via discussion forums, providing timely feedback on assessment, workload, and complaints from students among others. Lecturers had several recommendations for how the virtual environment could be improved inclusive of the addition of instructional designers to the cadre of support staff and the need for a blended learning policy. These findings suggest that lecturers and students recognised the value Moodle provided for teaching and learning and may be used as a guide for strengthening the use of the resource towards improving the quality of interaction and the degree of student satisfaction at the institution.