The use of online educational systems called E-learning has improved both teaching and learning. While researchers have examined several factors that affect the adoption and acceptance of E-learning among the students, the role of perceived security has not yet been examined. Using the Technology Acceptance Model (TAM) as the base, this paper investigates the impact of perceived security on E-learning acceptance among university students. Using a cross-sectional design, data were collected from 313 university students using an online survey. The analysis with SmartPLS v2.0 confirms that perceived security positively affects intention to use E-learning through the mediator (perceived usefulness). Further, a positive impact of perceived security was also found on perceived usefulness and perceived ease of use. In the end, we have given recommendations for the stakeholders-university, faculty, and students.