This research deals with the different psychological processes people undergo when they experience firsthand authentic moral conflicts. It also discusses the value of authentic moral conflicts in students' moral development, and reasons for the ineffectiveness of moral education in China. The main reason for the unsatisfactory effects of moral education in China over a period of time lies in the predominance of virtual moral education. In authentic situations, the proper arrangement of moral conflicts requires careful analysis of values hidden in the prearranged or generated moral conflicts so as to utilize, guide, and control them properly. Such arrangement of moral conflicts should be adapted to students' life experience for deepening their understanding of the moral aspects of life. Also, special attention should be attached to students' varied requirements, thus leaving enough options and space for their independent participation in activities of moral education.