Virtual reality (VR) involves using devices like headsets to simulate immersive experiences. The document traces the history and development of VR from 2001 onwards, including the SAS Cube, Google Street View, and Microsoft Hololens. It discusses applications of VR like military combat training, heritage site recreation, and virtual reality therapy. VR can also incorporate video game elements and has been used to develop cameras that capture 360-degree images and videos for viewing in VR.