This study examines the presence of transactional distance among students, the factors affecting it, as well as the way it influences the learning process of students in a blended distance learning setting in Greece. The present study involved 12 postgraduate students of the Hellenic Open University (HOU). A qualitative research was conducted, using information collected via individual semi-structured interviews. Content analysis of the gathered information provided evidence regarding the existence of student-student transactional distance for several reasons, such as geographical and relatively limited face to face interaction. The role of the tutor as well as of the course provider were also examined in this respect. Finally the study indicated that the existence of perceived transactional distance among the students has a negative effect on their learning process.