This qualitative case study aimed to explore how novice instructional designers solved a real-world problem by proposing an instructional design model in Second Life. Twenty-one novice instructional designers who enrolled in a Distance Education course were tasked with proposing an instructional design model to solve the high drop-out rate problem in a Distance Education center. In the Second Life environment, an island was rented and a Distance Education center was built. The participants worked in teams to propose an instructional design model for solving the real-world problem by simulating themselves as distance education specialists in this virtual Distance Education center. The data were collected through interviews, open-ended questionnaires, system logs, and group reports regarding their problem-solving processes. The results showed that the novice instructional designers stated that carrying out the problem-solving process in the Second Life promoted their motivation and engagement related to the real-world problem. To solve the real-world problem, five groups proposed Analysis-Design-Development-Implementation-Evaluation model, while one group proposed an Attention-Relevance-Confidence-Satisfaction model. Although the participants were aware of the potential of the Second Life as a Problem-based Learning environment, they stated that they preferred alternative technologies due to access and usability issues.