The majority of episodic memory (EM) tests are far removed from what we experience in daily life and from the definition of this type of memory. This study examines the developmental trajectory of the main aspects of episodic memory—what, where, and when—and of feature binding in a naturalistic virtual environment. A population of 125 participants aged from 6 to 24 years was asked to navigate, by using a joystick, in a virtual urban environment composed of specific areas, and to memorize as many elements as possible (e.g., scenes, details, spatial and temporal contexts). The ability to recall factual content associated to details or spatiotemporal context increased steadily from the age of 8 to young adulthood. These results indicate main developmental differences in feature binding abilities in naturalistic events which are very sensitive to age in comparison with a standard EM assessment. Virtual reality therefore appears to be an appropriate technique to assess crucial aspects of EM development in children and adolescents and it should provide helpful tools for the detection of subtle memory deficits.