Virtual reality is a computer-generated simulation of an environment that users can interact with. It creates an immersive 3D world using specialized equipment like headsets and gloves. There are different types of VR - immersive fully surrounds the user, non-immersive uses large displays, and window-on-world displays 3D environments on regular screens. VR has applications in fields like the military, healthcare, education, and entertainment. It allows users to experience places and experiment safely, but the technology can be expensive and complex.