This study investigated the effectiveness and dynamics of peer feedback in online and offline learning environments, focusing on English as a Foreign Language (EFL) students' affective engagement and its impact on learning outcomes. Utilizing an explanatory sequential mixed methods design, the research divided participants into groups that studied through Zoom and traditional classrooms over 12 weeks, analyzing their engagement with peer feedback. Data were gathered from Likert-scale and open-ended questionnaires, along with performance scores on key tasks, and analyzed using descriptive statistics, t-tests, linear regressions, and thematic analysis. The findings indicated that students valued peer feedback in both settings, with online learners showing higher engagement levels. However, this engagement did not translate into improved writing skills, highlighting the need for further research into other factors that could enhance EFL writing proficiency.