Virtual reality uses head-mounted displays and sensors to simulate physical presence in imaginary worlds or recreate real-world locations. The Oculus Rift is a virtual reality headset that uses a head-mounted display and lenses to create stereoscopic 3D imagery and track the wearer's head movements and position. It was created to provide an immersive, panoramic field of view and sense of presence to simulate experiences like gaming, education, and entertainment. While virtual reality has potential applications, challenges remain around natural interaction methods, content creation, costs, and psychological effects.