This paper examines an intervention using experiential learning and simulations in a virtual world that can promote social proximity, tolerance, and cooperation in diverse societies. The participants in the study were 125 Jewish and Arab students living in Israel. A mixed linear model for repeated measures analysis that included time of measurement (pre and post), ethnicity, and students' age as independent variables revealed a main effect for time for most social groups included in this study; that is, the participants reported more social proximity to other groups after the course, including groups not studied in the course (the LGBTQ community and people of colour). The results of the study suggest that experiential learning has considerable potential in the field of education to help students question their prejudices, experience being someone else, and ultimately feel social proximity for the other, thus reducing stigmas and racism.