This paper proposes a dynamic VR environment design approach to enhance the way a user experiences a computer generated character’s movement. We transferred concepts and practices from performance studies to create a dynamic VR environment, in which design elements are interconnected and changing with the character’s movement. Our focus was on space and light as two essential elements of both dance performances and virtual environments. We employed and tested our dynamic VR environment design approach by means of two studies (on space and on light) with 24 users in total. The results of these studies are discussed with regard to the enhancement of, and benefits for the user experience, followed by suggestions for the applicability of our approach to other fields in VR design.