Inspired by design-based research, this article reports on an intervention in moral education aimed to strengthen the students’ ethical competence (age 11–13). The instructional designed utilized VR and a 360-degree video depicting bullying, allowing the students to take the position of a student who is both a witness to and a victim of bullying. A model of ethical competence with three dimensions (cognitive, emotional, and action) was developed in creating the instructional design, and then applied in the analysis of the data consisting of 30 student texts and three focus group interviews. In our analysis we further develop our proposed model of ethical competence, and discuss key tendencies in the students’ ethical reflections, including their emphasis on consequences for themselves, ability to take the perspective of another, and trust in adult caretakers to solve their problems.