This chapter will provide the reader with a historical context and introduction to contemporary learning theories for 3D and immersive environments being used for educational purposes. Many traditional educational theories predate the emergence of the multimedia literacy movement and do not adequately address the challenges of developing, delivering, and integrating multimedia based content such as game-based immersive environments into curricula. The authors place significant emphasis on the importance of relevant, accurate, and situated aspects of culture and diversity throughout the development, implementation, and evaluation phases of immersive learning environments. To this end, a new theory is introduced and discussed in detail. The Ecology of Culturally Competent Design has been developed to specifically address the rigors and challenges of accurately situating culture within virtual environments.