Background: An equitable and positive learning environment fosters deep self-directed learning in students and, consequently, good practice in their profession. Although demotivating weaknesses may lead to repeated day-to-day stress with a cascade of deleterious consequences at both personal and professional levels, a possible relationship between these parameters has not been reported. This study was undertaken to determine the relationship between students’ perceptions of their educational environment and their stress levels. Methods: Sixty-one first year students at the Dental Faculty, University of Malaya, Malaysia participated. The Dundee Ready Education Environment Measure (DREEM) was used to determine educational environment while self-rated perceived stress level was measured by the Depression Anxiety Stress Scale (DASS). Results: Most students (62.39%) showed positive perceptions for the total and five domains of DREEM. The highest percentage was observed for “Students perception of learning” (64.04%) while the lowest was for “Students’ social self-perception” (60.32%). At the same time, 61% of students showed high perceived stress levels. However, this was not associated with their DREEM scores. Conclusion: Although a positive perception of their educational environment was found, minor corrective measures need to be implemented. Furthermore, longitudinal studies on an annual basis would provide useful input for strategic planning purposes. © Penerbit Universiti Sains Malaysia, 2016.