As the metaverse emerges as a prominent domain of digital interaction, understanding what drives immersive user engagement is increasingly critical for developers, scholars, and policymakers. Escapism—the desire to cognitively disengage from reality—has surfaced as a key psychological antecedent to immersive experience in virtual environments. This study offers conceptual and methodological advancements by modeling escapism as a second-order formative construct and immersive experience as a second-order reflective construct, thus adopting a formative—reflective higher-order modeling approach rarely applied in this domain. Using survey data from metaverse users, the study tests a structural model linking escapism, immersive experience, and downstream outcomes. Findings demonstrate that immersive experience fully mediates the effect of escapism on hedonic well-being, eudaimonic well-being, and user engagement, thereby highlighting its central role in translating psychological triggers into user outcomes. The study offers theoretical clarity and practical insights for developers to equip them to deliver a metaverse experience aligned with users’ escapism-related expectations. It also provides inputs relating to policy guidance for using escapism to promote responsible digital well-being, thereby contributing to the public good and aligning with the United Nations’ Sustainable Development Goal of promoting well-being.