With increasing cultural diversity as a result of globalization, intercultural competence (IC) to interact and co-exist in multicultural environments is recognized as being very important. Research indicates that cultural knowledge alone, or even being immersed in a different cultural environment does not necessarily lead to the development of IC necessary to deal with differences in behaviour, communication styles, and values and beliefs. Rather, it requires intentional development particularly of critical awareness of an individual's cultural identity, and the values and beliefs that underpin one's attitude and behaviour. Providing effective learning and teaching approaches to facilitate development of these affective and behavioural dimensions, challenges traditional pedagogical practices. Second life (SL), a multi-user virtual environment, potentially provides effective intercultural experiential learning opportunities to develop the desired IC by challenging personal beliefs and assumptions underpinning cultural frameworks and identity. This paper evaluates SL as one of the approaches used to develop IC in a first year IC module in a New Zealand university. Based on data from two case studies, it presents and discusses significant findings in terms of using SL and the development of students' IC.