Second Life is a 3D virtual world environment where we can create avatars and interact with people as in real life. Social presence and social learning find a significant place in online learning environments. 3D virtual worlds like SecondLife enable teachers to create opportunities for learning through collaborative learning social networks. NMC (New Media Consortium) in its various reports has also indicated an increased usage of virtual worlds in educational context. Even Gartner Group predicted that more than 80 per cent of internet users will have one or more avatars in online communities. In this presentation we will understand the advantages and limitations of using virtual worlds in educational environments.