This exploratory study adopted immersive virtual reality (VR) technology to develop a task assessing college students' intercultural competence, specifically their ability to mediate an intercultural conflict. Participants were 22 students enrolled in the intercultural communication class in a U.S. university. They first completed a pre-conflict mediation task using a VR platform following three steps: (a) reading a scenario describing a conflict situation between people from different cultures; (b) observing two people having a conflict in a 360-degree VR video; and (c) mediating the conflict on the-spot by proposing a solution to the conflict. After completing the pre-task, they attended two class sessions (75 minutes each) that aimed to develop their conflict mediation skills. After the sessions, they completed a post conflict mediation task following the same steps as the pre task. A comparison between the pre- and post-task performance revealed significant gains in conflict mediation skills assessed on five dimensions: social initiative, empathy, perspective-taking, solution, and clarity in discourse. Survey data showed that the VR task evoked realistic emotions from witnessing a conflict, which in turn prompted the participants to take initiative in mediating the conflict.