Agitation is a common and growing issue in healthcare, especially within psychiatric services. However, many healthcare students report lacking adequate preparation to respond effectively, often due to fear, stigma, and limited real-world practice. Conventional training methods, such as lectures and standard simulations, are not only resource-heavy but also provide few chances for repeated, safe rehearsal. Virtual reality (VR) offers an alternative by enabling immersive, standardised, and repeatable exposure to challenging clinical situations. In this context, the education team at [redacted for peer review] introduced the Managing Aggression using Immersive Content (MAGIC) programme—a compulsory three-hour workshop in the psychiatry curriculum for medical and nursing students. The programme integrates classroom teaching, role-play, and the Virtual Reality in Agitation Management (VRAM) exercise to promote experiential learning. Its objectives are to build confidence, enhance empathy, increase mental health literacy, and improve competence in managing psychiatric agitation. Using a quasi-experimental design with pre- and post-intervention testing, 152 students participated in the evaluation. The findings showed significant improvements in confidence, self-rated skills, and knowledge, as well as reduced stigma towards individuals with mental illness. Students also rated the VRAM component positively for both usability and educational impact. These outcomes underscore the value of integrating VR technology with traditional pedagogy to enhance student learning, improve readiness for high-stress clinical encounters, and foster more effective patient care.