Architectural education in Egypt is not used the advanced methods yet e.g., digital studio, simulation methods, and virtual reality technology. Thus, this paper proposes a new method for updating the future education of architecture to be more qualified and smarter for architectural students such as applying virtual reality technology (VR). Furthermore, VR depends on various tools and systems such as, Computer Aided Virtual Environment (CAVE system) that presents the third dimension of space to be realized with all details. The proposed method is shown to benefit the architectural students, whether at the level of study or in keeping pace with the labor market in the future. In this track, virtual education can be applied specially in particular theories and history of architecture. Therefore, the architectural students can improve their sense of spaces, proportions, materials, textures, lighting, masses of buildings and all other needed functions. Moreover, VR model of historical site is proposed in this paper as a case study by using the CAVE system to enrich the architectural education especially in the course of architecture history and at the local level in Egypt. Therefore, architectural students can perceive all the design principles in 3D virtual environment (VE) as the perception of different spaces by immersing in virtual world. This saves time and effort instead of visiting the real sites under study besides saving the cost of travel and transitions. To verify the effectiveness of the proposed solution, a detailed case study has been applied on Elselsla area, which is located in Alexandria governorate in Egypt. This study area ia selected to be re-designed as a renovation of historical area with competency and outperformance according to the architectural theories and design principles.