This review explores the diverse applications of Virtual Reality (VR) in healthcare, highlighting its evolution from military domains to a widely accessible technology. It delves into VR's historical development, theoretical foundations, and current adoption status, emphasizing its benefits in enhancing medical education and clinical training. The review discusses VR's role in surgical training, anatomy/physiology education, and therapeutic interventions, such as neurorehabilitation and palliative care. It addresses challenges related to technology and pedagogy, proposing solutions for overcoming these barriers. The review also looks ahead to future trends and potential impacts of VR in healthcare, underscoring its transformative potential in revolutionizing practices, education, and training methodologies. Despite limitations, including cost, accessibility, and evidence-based research, VR holds promise for improving patient outcomes and enhancing healthcare delivery.This review explores the diverse applications of Virtual Reality (VR) in healthcare, highlighting its evolution from military domains to a widely accessible technology. It delves into VR's historical development, theoretical foundations, and current adoption status, emphasizing its benefits in enhancing medical education and clinical training. The review discusses VR's role in surgical training, anatomy/physiology education, and therapeutic interventions, such as neurorehabilitation and palliative care. It addresses challenges related to technology and pedagogy, proposing solutions for overcoming these barriers. The review also looks ahead to future trends and potential impacts of VR in healthcare, underscoring its transformative potential in revolutionizing practices, education, and training methodologies. Despite limitations, including cost, accessibility, and evidence-based research, VR holds promise for improving patient outcomes and enhancing healthcare delivery.