This survey examines the familiarity of students at Virtual University of Shiraz (VUS), as a first virtual institution in Iran, with the concept and importance of digital libraries. To do this research, a descriptive and survey methodology was used. Students of Virtual University of Shiraz in comprise the population of the study. Findings showed that more than 66 percent of distance students are not familiar with the concept of digital library. They believe that lack of a well-structured digital library has had a negative impact on the academic achievement of students of Virtual University of Shiraz. Students have also expressed that the information resources provided by the university cannot meet all their educational and information needs.