A system and a method for virtual reality based interactive learning are provided. The method includes simulation of a 3D interactive scene in a VR environment, and rendering the 3D interactive scene including queries on a VR display platform. Responses to the queries are received in the VR environment. A first cumulative assessment score is computed based on the response and attributes of participants. Also, subsequent 3D interactive scenes are dynamically simulated in the VR environment based on the first cumulative assessment score. Subsequent queries associated with context of the subsequent scenes are rendered, and a second cumulative assessment score is computed based on the subsequent responses to the subsequent queries. Furthermore, an overall assessment score is computed based on the cumulative assessment scores. A 3D interactive scene is rendered till the overall assessment score is equal to or greater than a threshold assessment score.