Background: In recent years, the use of virtual reality (VR) environments for education has gained interest in research and education. However, little is known about the potential of social VR environments for collaborative learning. Objectives: This study explores pre-service teachers' (PSTs') collaborative learning and role-based drama activity, focusing on their self-created fictional avatar characters and their experiences of presence while working on a group-based virtual drama activity. Methods: PSTs' course on environmental storytelling was used as the context of the study, in which they worked in small groups in a VR environment (AltspaceVR) from the desktop computers due to COVID-19 restrictions. Qualitative research data were collected via questionnaire (N = 15). The data were analysed using a community of inquiry model to explore the PSTs' experiences of online presence. Results and conclusion: The results showed that the PSTs' experienced creating and acting as virtual characters as meaningful and engaging activities, and elements of presence were manifested in their reflections. Based on this case study, it can be concluded that the interactive virtual drama activity has the potential to foster the experience of presence in online learning.