This study examines the impact on engagement and affective outcomes of playful learning in social virtual reality (SVR) for distance and open education settings and aims to provide a practical framework for playful learning design. Three case studies in the United States and Greece were examined where playful learning was organized for e-learning. Data collection methods include questionnaires, observation of online course meetings, reviewing of course communications and chat logs records, student and instructor interviews, student coursework assessments, and reflections. Findings indicated that playful learning experiences in SVR can increase academic interest, intrinsic motivation, engagement level, satisfaction, and completion rates. Instructor genuine investment in a thoughtful, sophisticated humorous approach was vital for student buy-in. Finally, guiding principles for playful learning design in SVR are summarized in a model involving four dimensions: theme, actions, narrative, and auxiliary components (TANC).