People with autism spectrum disorder (ASD) often encounter challenges in daily life, particularly when navigating complex environments. These challenges can include crossing streets, following traffic signals, obeying instructions, and even seeking assistance to reach a destination. Real-world practice for these situations can be risky. This paper introduces “Street Simulator 2.0,” a virtual reality (VR) application designed to provide a safe environment for children to practice navigating these challenges and reach various destinations while following instructions from virtual characters. This version utilizes MEEXUU, an Extended Reality (XR) methodology grounded in User-Centered Design (UCD) principles. To enhance interaction for children with ASD, we incorporated new gamification elements like points, rewards, and challenges. These elements proved highly effective in captivating children’s attention and motivating them to complete activities successfully. The study revealed a high level of acceptance for “Street Simulator 2.0” among children with ASD. Gamification elements played a crucial role in enriching their experience and fostering participation. Participating psychologists emphasized the value of VR as a tool for skill development in children with ASD and expressed positive feedback regarding the experience offered by “Street Simulator 2.0”.