This study investigates a virtual reality (VR) cross-cultural interactive learning environment that com-bines a 360- degree video camera for contentcreation, a viewing tool, and a video conference plat-form for real-time interaction. This environment aimsto address the limitations of traditional 360-degreeVR tools, particularly in enabling simultaneous, in-teractive engagement among multiple users. Thestudy recruited 31 university students from Chinaand Indonesia utilizing convenience sampling to testthe efficacy of the environment in fostering cogni-tive development and challenging cross- culturalstereotypes. The methodology included analysingstudent- created content, questionnaire responses,and insights from semistructured interviews. Theanalysis, grounded in a cognitive development tax-onomy and an assessment of stereotype changes,revealed that the students reached the “remem-ber” and “understand” cognitive levels. Additionally,prevalent stereotypes held by the students were ad-dressed. The immersive nature of the VR environ-ment and the interactions with foreign peers werehighly appreciated, significantly contributing to cogni-tive growth and stereotype mitigation. These findingsoffer valuable insights for educators and research-ers in technology-assisted cross-cultural education,emphasizing the importance of designing interactiveVR-based activities that effectively facilitate cognitivedevelopment and address cross- cultural stereotypes.