Virtual reality (VR) has been gaining prominence in education, with its interactive capabilities continually expanding. This quantitative study (N = 91) tested the educational effectiveness of high-immersion VR (HiVR) versus low-immersion VR (LiVR) and the impact of interactivity on vocabulary learning. The between-subjects portion of this study compared foreign language vocabulary learning using HiVR headsets and traditional laptops (LiVR). Multivariate analyses of covariance revealed that although the vocabulary scores of learners using HiVR were higher than the scores of learners using LiVR, the difference was not statistically significant. The within-subjects portion of this study tested the impact of the interaction with virtual objects representing the target vocabulary. Although students reported enjoying the interactive aspects of the experience, the interactivity did not significantly impact learning outcomes in either HiVR or LiVR. These findings have practical and theoretical implications about how different degrees of immersion and interactivity influence vocabulary learning and retention. The study is relevant for scholars and language teachers, as well as curriculum and VR application designers.