Virtual reality allows users to experience simulated, immersive environments through head-mounted displays and other sensory inputs. The document discusses different types of VR systems including non-immersive, augmented reality, and immersive systems like head-mounted displays and CAVEs. It also describes common VR hardware like data gloves, motion trackers, and the tools used to develop virtual environments and applications. The future of VR is presented as having applications in fields like healthcare, education, scientific research, and more.