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Mobile devices nowadays are widespread and provide great multimedia capabilities, which make the delivery of mobile learning a more realistic approach since it can provide just in time learning on the move. Where Mobile learning systems usually require many hardware and software resources. There are numerous educational institutions that cannot afford such investments, and cloud computing is the best solution for them. The main advantage of the cloud computing is that it has centralizing storage, memory, processing, bandwidth and also it reduces the cost effectiveness for the implementation of the Hardware, software and License for all. Interactive Mobile Live Video Learning System in Cloud Environment deals with the design and implementation of interactive learning through mobile devices combined with the new technology of cloud computing. Here the live lectures, while capturing from the instructor webcam are splitted as chunks and simultaneously streamed to the cloud. Once a request is received from the student, live video from cloud is buffered in mobile device local memory and streamed from there to view. They can also post doubts and get reply from instructor through the interaction facilities provided.