Parents recognize the potential benefits of technology for their young children but are wary of too much screen time and its potential deficits in terms of social engagement and physical activity. To address these concerns, related literature suggests technology usages with a blend of digital and physical learning experiences. Towards this end, we developed Kid Space, incorporating immersive computing experiences designed to engage children more actively in physical movement and social collaboration during play-based learning. The technology features an animated peer learner, Oscar, who aims to understand and respond to children’s actions and utterances using extensive multimodal sensing and sensemaking technologies. To investigate student engagement during Kid Space learning experiences, an exploratory case study was designed using a formative research method with eight first-grade students. Multimodal data (audio and video) along with observational, interview, and questionnaire data were collected and analyzed. The results show that the students demonstrated high levels of engagement, less attention focused on the screen (projected wall), and more physical activity. In addition to these promising results, the study also enabled us to understand actionable insights to improve Kid Space for future deployments (e.g., the need for real-time personalization). We plan to incorporate the lessons learned from this preliminary study and deploy Kid Space with real-time personalization features for longer periods with more students.