This project has two primary objectives. The first goal is to facilitate distance learning by enabling advanced virtual laboratories for deployment in online degree programs and utilization by co-op students. The second goal is to provide immersive virtual environments for collaborative learning and team building in undergraduate engineering education. The virtual environment is affording flexibility to on-campus students to run experiments outside of regular class time, thus allowing for a blended laboratory delivery mode. Students spend a limited time in a laboratory facility to familiarize themselves with the equipment, materials and procedures and then access an online laboratory to conduct additional experimental procedures. A key innovation of this project is the use of multiplayer game engines for developing virtual laboratory environments for collaborative learning in undergraduate engineering education.