The study aimed to evaluate the perception of educational environment among public versus private Physical Therapy institutions in Lahore, Pakistan. It was an analytical cross-sectional study that included final year physical therapy students from various public and private physical therapy institutions in Lahore by using DREEM questionnaire. The total score of DREEM questionnaire that was recorded in complete research concludes that in Public Sector, no student responded positive towards plenty of problems whereas, 83.0 %(n=39) responded more positive than negative. Almost 17.0 % (n=8) of students in public sector responded excellent. In the private sector, only 5 % (n=3) students responded in plenty of problems while 76.7 %(n=46) showed more positive rather negative. Similarly, 18.3 % (n=11) students responded excellent. Students’ perception about educational environment of their institutions remained positive showing satisfaction among them. The greater number of students in public sector medical colleges responded more positively compared to private ones.