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Abstract Disruptions in fear-extinction learning are centrally implicated in a range of stress-related disorders, including anxiety and posttraumatic stress disorder. Given that these disorders frequently begin in childhood/adolescence, an understanding of fear-extinction learning in children is essential for (1) detecting the source of developmental susceptibility, (2) identifying mechanisms leading to pathology, and (3) informing the development and/or more judicious application of treatments for youth. Here, we offer and validate a novel virtual reality paradigm to study threat-related learning and extinction in children that models real-world cues, environments, and fear-inducing events that children are likely to experience, and are linked to the development of fear- and stress-related pathologies. We found that our paradigm is well tolerated in children as young as 6 years, that children show intact fear and extinction learning, and show evidence of divergence in subjective, physiological, and behavioral measures of conditioned fear. The paradigm is available for use in 3-D and in 2-D (e.g., for the MRI scanner) upon request at www.tnp2lab.org .