This study incorporated Google Street View into a 3D virtual environment, known as VECAR, in which EFL learners controlled their avatars to learn vocabulary in a context of New York City. New York City's Times Square is full of real-life materials, realia, which can be used to assist situated incidental vocabulary learning and to connect vocabulary acquisition to the real world. The case study design combining both qualitative and quantitative analysis was used mainly to investigate the program's impact on vocabulary acquisition, and to track the ongoing dynamics of the vocabulary acquisition across the four research phases, learner motivation in terms of self-efficacy and attitudes toward vocabulary learning, and strategy use across learners. The results showed that all participants involved in the study acquired the target vocabulary, increased motivation, and deepened strategy use gradually over time. The program supported both contextualized and motivated vocabulary learning processes in realistic situations.