Context In virtual fencing, where an animal learns to remain within a set area by responding to an audio cue in order to avoid receiving an aversive electrical stimulus, maternal learning may play a role in facilitating successful learning. Aims This study aimed to investigate the effect of early observation of virtual fence engagement using a maternal demonstrator on the ability of lambs to later learn to respond correctly to a virtual fence. Method Merino lambs (n = 114) were assigned to one of three treatments prior to being trained to a virtual fence: (1) lambs from experienced demonstrators, in which the lambs observed their mothers interacting with a virtual fence having been trained prior to lambing; (2) lambs from naïve demonstrators, in which lambs observed their mothers learning the virtual fence system; and (3) unexposed lambs, in which lambs had not encountered a virtual fence prior to being trained. Following weaning, lambs were trained to a virtual fence and responses to stimuli were recorded. Key results The number of audio cue and electrical pulse stimuli received by the lambs did not differ across the three treatments (P > 0.05). There were no significant differences between the proportions of correct behavioural responses to the audio cue stimulus across the three treatment groups (P > 0.05). Logistic regression analysis of learning curves showed that lambs from naïve demonstrators displayed a change in behaviour and learned the correct response to the audio cue, while the unexposed lambs and lambs from pre-trained demonstrators did not. Conclusions These results suggest that maternal influences may be influencing the ability of lambs to learn a virtual fence, although the training protocol was limited due to time, space, equipment and environmental constraints. Implications This work may help to inform producers on management decisions for the application of the virtual fencing, such as enabling lambs to observe their mothers interacting with a virtual fence prior to weaning to enhance learning the virtual fence when applied later in life.