Purpose: The aim of this paper is to give a critical assessment of a study designed to investigate the potential of a new method for teaching HRD students about performance appraisal. It is argued that this approach is in the vanguard of developments in IT and learning. Design/methodology/approach: The paper takes the form of an explorative study which is undertaken in the context of a virtual world setting. Findings: There is potential value added for HRD teaching and learning using virtual world technology. Subjects identified strengths and weaknesses in their use of Second Life[C] for performance appraisal skills training. Importantly, there was some evidence that subjects emotionally identified with their online characters, with potential implications for the impact of training. Necessary adjustments to research methods are identified. Research limitations/implications: This was a small scale study. Initial enquiry will inform larger scale research. Practical implications: The model gives HRD students scope to practice different roles in performance appraisal and, in the longer term, to experiment with "ways of being". Subjects could be mentored during their engagement in the appraisal process, enabling active tutoring for skill development. Also, a variety of teaching strategies could be employed such as exploring cultural aspects and engaging students in peer-to-peer teaching. Originality/value: The paper presents an innovative method, blending IT with a more conventional training concept, role-play. (Contains 6 notes.)