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The present study was conducted to investigate the effect of computer-mediated interaction and face-to-face oral interaction on the recognition and production of vocabulary by Iranian learners of English. To this end, 128 male and female high and low proficiency level learners of English participated in the study. Recognition and production of target words were assessed by receptive and productive, oral and written measures. Four independent two-way ANOVA procedures were used to analyse the data. Results showed that the computer-mediated interaction group at both levels (advanced & elementary) outperformed the face-to-face oral interaction group on both written and oral vocabulary recognition and production tests.  It also turned out that although the low-proficiency level learners' written vocabulary recognition was affected by computer-mediated interaction more than that of the high-proficiency level learners, the latter experienced greater gains in written vocabulary production. The findings show that Computer-mediated interaction can be advantageous to vocabulary teaching and learning.