The rapid digital transformation of healthcare necessitates new educational models that foster digital competence, innovation capacity, and student empowerment. This study explores the intersection of virtual reality (VR) and peer-assisted learning (PAL) in health professions education, presenting the development of the VR-PAL Innovation Model—a conceptual framework that integrates immersive simulation with student-led pedagogical leadership. Drawing on reflexive thematic analysis of focus group interviews with three cohorts of peer assistants (N = 10), the study identifies three interconnected components: a pedagogical foundation rooted in sociocultural learning theory, a structured train-the-trainer program cycle, and a set of innovation enablers, including inclusive design, co-creation, and the cultivation of a digital mindset. The findings highlight how peer educators, through their dual roles as learners and facilitators, emerge as digital change agents capable of driving innovation from within the learning environment. The model extends existing PAL frameworks by positioning students not only as knowledge sharers but also as agents of educational technology integration. While grounded in occupational therapy education, the VR-PAL model offers a transferable approach for institutions aiming to scale student-centered digital innovation. Implications for implementation, scalability, and future research are discussed.