This article explains processes of disaporan ‘virtual village community’ (VVC) formation and its moral action. It is suggested that both self-interest and normative aspects of behaviour contribute to the formation of VVCs, centred in the ancestral place. However, social action for development becomes difficult in an evolving socio-economic environment unless core values are refurbished by realigning interests and creating new modes of interaction and communication. The intervention by morally driven members is key to mobilising VVC for development. Members’ links external to the VVC enhance its capacity to contribute to ancestral places. As most of the diaspora from South Asia are rooted in village communities back home, analysis and findings are of wider significance.