This study investigated whether interactive virtual reality (VR) training of social and emotional abilities (InterAction) improves socio‐emotional functioning of youth with developmental language disorders (DLD). To this end we conducted a multiple baseline intervention study, comparing participants’ social abilities during a baseline phase with their changes in abilities during the intervention and posttest phase. The training group consisted of 29 adolescents (20 boys, 9 girls) with DLD from the Netherlands. The training consisted of nine, weekly (45–50 min) individual sessions with each participant. In addition, to improve estimation of the secondary outcomes, a matched sample of 9 adolescents with DLD was also assessed, but received no treatment. Results of the nonoverlap of all pairs test showed a large effect of the VR training on more than half of the individualized intervention goals (56.90%). The results of multilevel analyses indicated that there was significant improvement from baseline to posttest on social abilities (d = 1.36), indicating effectiveness of the VR intervention. Secondary outcomes indicated that, compared to the control group, adolescents of the training group improved significantly in their cognitive Theory of Mind (ToM). However, no significant differences were observed between the two groups in affective ToM or in parent reported socio‐emotional functioning. Importantly, adolescents highly appreciated the VR training, as they found it both enjoyable and educational. They reported increased interaction with peers, feeling more confident in social situations, and would recommend the training to others. These findings suggest that interactive VR may be a promising tool to improve socio‐emotional functioning in adolescents with DLD.