This study provides the educational experience of an architectural design studio in a virtual environment. It aims to illuminate the complications of planning and implementing a VDS and find the balance between flexibility and structure in VDS design. Action research was used due to its ability to document the process and reflect on the methods tested. Five cycles of action research, in addition to a preplan and a pilot cycle, were conducted on a case study. Students' design quality, clarity of presentations, and engagement with VDS were selected as indicators of a successful action plan. The results highlight that despite the initial challenges, introducing new design mediums and leaving the students free to work with any combination of them (flexibility) fosters creativity and efficiency but poses technical issues and confusion. However, sessions with a loose set of activities without proper instructions resulted in increased confusion. The successful action plan provided a VDS with an intricate balance between a structured set of activities to achieve the educational goals and flexible participation of students to improve the engagement of students. In addition, the students' grades improved during the research as they got more familiar with the VE and got a sense of the VDS. However, the challenges that are reported in this research may moderate the results and instructors should find proper innovative solutions on the go to make the educational experience rewarding for the students.