As digital technologies continue to evolve, they offer unprecedented opportunities to transform traditional educational paradigms. Virtual worlds offer a dynamic and immersive platform for fostering sustainability education, bridging the gap between theoretical knowledge and practical application. In these interactive environments, students can engage with complex ecological systems and sustainability challenges in a risk-free setting, allowing for experimentation and exploration that would be impractical or impossible in the real world. This study aims to investigate the application of various types of virtual worlds in educational settings, examine their characteristics and potential, and explore how they foster critical 21st-century skills like critical thinking, creativity, communication, and collaboration. This paper comprehensively explores various types of virtual worlds—Adventure World, Simulation World, Creative World, Role-Playing World, and Collaborative World—assessing their impact on educational processes and outcomes. Adventure Worlds, with narrative-driven quests, engage students in exploratory learning within a story context. Simulation Worlds replicate real-world environments, allowing students to practice and hone practical skills in a risk-free setting. Creative Worlds provide open-ended, sandbox-like environments where innovation and imagination are paramount. Role-Playing Worlds facilitate empathy and perspective-taking through character-driven scenarios, while Collaborative Worlds emphasize teamwork and problem-solving in group projects. The narrative review methodology was adopted for the comprehensive analysis and synthesis of the literature to assess the impact and integration of virtual worlds in education, focusing on identifying trends, challenges, and opportunities within this domain. The evaluation methodology used in this study incorporates a mix of the Theory of Inventive Problem Solving (TRIZ), Concept-Knowledge (C-K) theory, Structure-behavior-function (SBF) modeling, the Framework for 21st Century Learning (P21), and Universal Design for Learning (UDL) to evaluate the characteristics and educational potential of different virtual world types. Findings indicate that virtual worlds effectively support critical thinking, creativity, communication, and collaboration skills, presenting a comprehensive analysis of how these environments can support, supplement, or transform traditional educational models. The main outcome of the study is the comprehensive exploration of various types of virtual worlds—Adventure World, Simulation World, Creative World, Role-Playing World, and Collaborative World—in education, demonstrating their significant potential to enhance learning experiences and outcomes through immersive, interactive environments that foster critical thinking, creativity, communication, and collaboration skills.