Virtual Reality (VR) technologies are transforming educational practices, offering new ways to engage students in immersive learning environments. However, there is still a gap in understanding how VR can specifically enhance teamwork skills and collaboration in higher education settings. We developed a real- time, interactive Maze Challenge for VR and evaluated its’ impact on team cohesion, communication, and leadership, while also comparing the VR-based exercise with traditional team-building methods. Twenty master's students from a User Experience (UX) Design course participated in the task, working in teams of four to five, led by a designated team leader, to navigate through a virtual maze. The results demonstrated significant improvements in team dynamics, with students reporting increased enthusiasm for teamwork, greater connectedness with their team, and increased confidence in collaboration, immediately after the immersive VR experience. Qualitative feedback emphasised the immersive nature of VR as a key driver for engagement and collaboration. The study concludes with recommendations for integrating VR into academic curricula to enhance teamwork skills and group cohesion.