ABSTRACT In the digital age, spherical video-based virtual reality (SVVR) emerges as a powerful tool for intercultural education, enabling immersive experiences that transcend geographical boundaries. However, prevalent research often reduces learners to passive observers, constraining the cultivation of intercultural competence. This study addresses the gap in current research by examining the effects of learning devices and interaction components within SVVR environments, based on embodied cognition theory, on intercultural competence. Additionally, it also focuses on student engagement during intercultural learning in SVVR environments, an aspect that previous studies have insufficiently explored. Using a mixed-methods approach with 80 participants from China and Indonesia, we compared four distinct learning environments: Basic Learning Environment (BLE), Virtual Reality Learning Environment (VRLE), Basic Guide Learning Environment (BGLE), and Embodied interactive Learning Environment (EILE). The findings indicate that the EILE, which achieves a higher level of embodied interaction, significantly enhances intercultural competence and learning engagement compared to other conditions. Specifically, EILE group showed superior emotional and cognitive engagement, as well as diverse and proactive behavioural patterns. This study underscores the importance of educational design in SVVR, showing that careful consideration of learning devices and interactive components can promote active learning, deeper understanding, and positive learning behaviours.