The purpose of this paper is, first, to summarize a theoretical perspective toward the development of a virtual reality innovation in education. Next, we will describe a virtual character project that is impacting the training of medical students in two institutions. In doing so, we will present a summary of three studies completed over the last 2 years, highlighting specific results from the research. Finally, we conclude with a discussion of the impact of these findings on the development and implementation of virtual reality systems for teaching and learning. It is our hope that through providing this study of a virtual reality scenario—experienced by over 100 end-users—from an educational concepts perspective will help others aiming to apply virtual reality to education.