This study presents a case study of a course on language usage in Japanese society which included a virtual exchange. Ten undergraduate students learning Japanese in the US and five undergraduate students learning English in Japan had asynchronous exchanges using VoiceThread and synchronous exchanges using Zoom to discuss Japanese culture, social concepts, and language usage in Japanese society. During asynchronous exchanges, students took turns to speak each other’s languages, but they were free to choose the language during synchronous exchanges. Pre- and post-exchange questionnaires were administered to assess the outcomes of virtual exchange with respect to language learning motivation, intercultural competence, and students’ development as a global citizen. In addition, students wrote learning reflection essays which were analyzed qualitatively to identify emerging themes of their experiences. Results of quantitative analysis of questionnaires indicate that students perceived benefits of virtual exchange for language learning, increased language learning motivation, and developed as a global citizen who respects and learns from cultural differences and feels interconnectedness with people of different cultures. Qualitative analysis of essays revealed that students experienced transformative learning. They came to appreciate their own differences which they previously viewed negatively, and this appreciation extended to diversity in general.