An authentic learning environment is learning that involves real world problems that are relevant to the learners and relate to their real life experience. Research indicates that Information and Communication Technology (ICT) tools can facilitate in creating authentic learning environment, thus improving student learning, interaction and satisfaction. Previous research has focused on using various forms of ICT such as online learning and web-based learning into the classroom. However, little attempt has been made to investigate the effectiveness of incorporating immersive Virtual Reality (VR) technology into the university classroom. Virtual Golden Foods Corporation (VGFC) is a simulated Virtual Reality (VR) organization being developed for use in teaching and learning at a large technology based university in Australia. This study focuses on authentic learning environment where students learn about decision making in complex business contexts throughout the semester which culminates in immersive VR exposure. The findings report that immersive VR environment helps to increase students’ understanding of decision making concepts.