Research indicates that high-immersion virtual reality (VR) has several unique affordances for language learning that contribute to learning outcomes, such as boosting learners' confidence, engagement, and motivation. However, little is known about the extent to which VR promotes language skills, in particular learners' verbal interaction using a second language (L2). The present study uses an intervention design to examine the impact of high-immersion VR on L2 Spanish learners' interactional development and perceptions of VR experience. Twenty-six beginning-level Spanish learners engaged in four social VR sessions over a 2-week period. Learners' perceptions of social VR were assessed through surveys and focus group interviews, and their changes in interaction-involved language performance were evaluated. The results reinforce previous research in showing that learners felt a heightened sense of presence in VR and that interacting in Spanish in the immersive virtual space was more enjoyable and less nerve-wracking than face-to-face conversation, albeit equally beneficial to learning. Quantitative analyses of learners' interaction revealed significant improvement in terms of their engagement, clarity, and content appropriateness. However, participants reported that technical issues could at times limit the pedagogical usefulness of VR. These findings reinforce the use of social VR in L2 instruction and provide novel insights about performance gains and Spanish L2 pedagogy in a virtual space.