The study on students’ feedback literacy in writing skills through online dialogic written feedback is scarce in the Indian higher education context. The present research integrates online written dialogic feedback mechanism with writing classroom instruction in an Indian university. 69 first year undergraduate students participated in the study. The study tries to see the change in the feedback literacy of the students over a period of 12 weeks. This has been done through adopting mixed-methods research. Data collection was done through dialogic written feedback, student questionnaire, semi-structured interviews, and original and revised drafts of students. The data was analysed by performing text analysis of the students’ feedback and students’ drafts, quantitative analysis of the questionnaire and qualitative analysis of the interview transcripts. The results indicate that the students manifest improvement in their feedback literacy to some extent in all these aspects but there is a lack of specificity and justification to the feedback points. The study implies that a close analysis of feedback literacy among students can be used to address the concerns related to student engagement in online written dialogic written feedback and could be very helpful in formative assessment of writing skills in higher educational context.