The purpose of this case study was to determine if learning occurred within a 3D virtual learning environment by determining if elements of collaboration and Nonaka and Takeuchi's (1995) knowledge spiral were present. A key portion of this research was the creation of a Virtual Learning Environment. This 3D VLE utilized the Torque Game Engine provided by Garage Games and a content pack created by BraveTree Productions, LLC. By creating this 3D didactic constructivist virtual environment, conversations were observed for collaborative and knowledge creation elements. Data for this mixed-design case study were gathered through three sources: the 3D virtual environment; a survey created by the researchers; and follow-up interviews. Findings revealed that the five forms of collaboration (Elementary Clarification, In-Depth Clarification, Inference, Judgment, and Application) amplified the knowledge creation process and indeed occurred within the virtual learning environment. It was also determined that all four modes for knowledge creation (socialization, externalization, combination, and internalization) were observed as well. (Contains 3 figures and 2 tables.)