This paper focuses on virtual world environments for education; specifically computer generated 3D animated environments, which also include computer games and simulations. In this paper, the author defines what virtual worlds are and explores the art and design education research that has been conducted in virtual worlds or is related to them. These include: virtual art and design; galleries and museums in virtual worlds; games in art education; visual literacy in the virtual world; identity, gender, and the formation of avatars; Virtual world art education in school system; assessment and other education applications through virtual environments; and virtual communities. This paper concludes by discussing how virtual experiences can be transformed into real world learning experiences.