Virtual worlds are receiving increasing attention as a promising technology to engage students in learning. However, the use of these technologies for educational purposes is currently hampered by a lack of understanding of how better learning can be achieved in such environments. Thus motivated, this study uses the lenses of flow and social translucence of technology theories to model the individual and technology-related perceptions that influence learning outcomes. Our results show that better learning is associated with learners’ flow experience variables (concentration and enjoyment) as well as a sense of presence (social and telepresence) in the virtual world. Further, the flow experience variables are influenced by the social and telepresence felt by participants, directly or indirectly via social norms. Unique to the virtual world environment, the three-dimensional realism experienced by learners is important in shaping their presence perceptions. The findings provide implications for both research and practice in this area.