This narrative review article explores the integration of virtual reality (VR) in physical therapy, highlighting its applications as both an intervention and diagnostic tool. The authors, Hamid Bateni, Jenna Carruthers, Rebecca Mohan, and Seyedamirhossein Pishva, conducted a comprehensive literature review and expert discussions to provide an overview of VR's use in physical therapy. The review covers the development and characteristics of various VR systems, their applications in assessment and diagnosis, and their effectiveness in intervention for different patient populations. Key findings include: 1. **Common VR Systems**: The article discusses several VR systems, including Oculus, Nintendo Wii, CAREN, Samsung Gear VR, Psious, and Virtualis, detailing their features and applications. 2. **Use of VR for Assessment and Diagnosis**: VR has been used to assess postural stability, gait, and balance in conditions like Alzheimer's disease, mild traumatic brain injury (mTBI), and Parkinson's disease. Studies have shown that VR can effectively detect balance impairments and postural stability issues. 3. **Use of VR for Intervention**: VR has been effective in improving gait, balance, and motor function in older adults, patients with Parkinson's disease, stroke survivors, and those with phantom limb pain. Studies demonstrate significant improvements in balance scales, gait speed, and motor performance using VR-based interventions. The authors conclude that VR is a powerful tool in physical therapy, offering unique advantages in patient engagement, motivation, and remote therapy. However, they emphasize the need for further research to optimize VR's potential in physical therapy, particularly in long-term follow-up and broader patient populations.This narrative review article explores the integration of virtual reality (VR) in physical therapy, highlighting its applications as both an intervention and diagnostic tool. The authors, Hamid Bateni, Jenna Carruthers, Rebecca Mohan, and Seyedamirhossein Pishva, conducted a comprehensive literature review and expert discussions to provide an overview of VR's use in physical therapy. The review covers the development and characteristics of various VR systems, their applications in assessment and diagnosis, and their effectiveness in intervention for different patient populations. Key findings include: 1. **Common VR Systems**: The article discusses several VR systems, including Oculus, Nintendo Wii, CAREN, Samsung Gear VR, Psious, and Virtualis, detailing their features and applications. 2. **Use of VR for Assessment and Diagnosis**: VR has been used to assess postural stability, gait, and balance in conditions like Alzheimer's disease, mild traumatic brain injury (mTBI), and Parkinson's disease. Studies have shown that VR can effectively detect balance impairments and postural stability issues. 3. **Use of VR for Intervention**: VR has been effective in improving gait, balance, and motor function in older adults, patients with Parkinson's disease, stroke survivors, and those with phantom limb pain. Studies demonstrate significant improvements in balance scales, gait speed, and motor performance using VR-based interventions. The authors conclude that VR is a powerful tool in physical therapy, offering unique advantages in patient engagement, motivation, and remote therapy. However, they emphasize the need for further research to optimize VR's potential in physical therapy, particularly in long-term follow-up and broader patient populations.