Humor-based teaching is gaining an increased attention from academicians and researchers all over the world. However, its outcomes and contextual factors which make it effective or ineffective are still not clear due to the limited research in this domain. In the present study, the focus is on understanding the effects of humor-based teaching in the university setting. The study utilized a cross-sectional method for data collection and a quantitative approach for data analysis. Data is collected from students in the graduation program in a higher educational institute in Oman. The key findings of the study are that out of three dimensions of humor-based teaching, psychological comfort significantly influences students' academic performance measured in terms of semester GPA and CGPA. The findings highlight that humor-based teaching is important and needs to be given greater attention in this context.