Teaching ethical reasoning is considered an important component of the undergraduate learning experience. A recent approach to teaching using experiential learning is through virtual worlds such as Second Life. We discuss how ethics may be taught using experiential learning in the virtual world of Second Life. Participants in the class in this example were eleven undergraduate honors students. The course involved presentations in ethical theories such as Buddhism and Utilitarianism. Students completed assignments based on experiences in Second Life that were then linked to ethical theories discussed. The observations and analyses they completed demonstrated that the experiential learnings provided opportunities to apply concepts and theories in a virtual and real world. Interestingly, the students found evidence of residents of the virtual world of Second Life to hold ethical principles which influenced their actions. However, there were other instances where residents adhered to few ethical principles other than self interest. Suggestions are made about the importance of introducing ethics to a virtual world such as Second Life.