It has long been speculated that many starburst or compact dwarf galaxies are resulted from dwarf-dwarf galaxy merging, but unequivocal evidence for this possibility has rarely been reported in the literature. We present the first study of deep optical broadband images of a gas-dominated blue compact dwarf galaxy (BCD) VCC 848 (M 2 × 108M ) that hosts extended stellar shells and thus is confirmed to be a dwarf-dwarf merger. VCC 848 is located in the outskirts of the Virgo Cluster. By analyzing the stellar light distribution, we found that VCC 848 is the result of a merging between two dwarf galaxies with a primary-to-secondary mass ratio 5 for the stellar components and 2 for the presumed dark matter halos. The secondary progenitor galaxy has been almost entirely disrupted. The age-mass distribution of photometrically selected star cluster candidates in VCC 848 implies that the cluster formation rate (CFR, ∝ star formation rate) was enhanced by a factor of ∼7-10 during the past ∼1 Gyr. The merging-induced enhancement of CFR peaked near the galactic center a few hundred Myr ago and has started declining in the last few tens of Myr. The current star formation activities, as traced by the youngest clusters, mainly occur at large galactocentric distances ( 1 kpc). The fact that VCC 848 is still (atomic) gas-dominated after the period of the most violent collision suggests that gas-rich dwarf galaxy merging can result in BCD-like remnants with extended atomic gas distribution surrounding a blue compact center, in general agreement with previous numerical simulations.