Virtual reality (VR) refers to interactive computer-simulated environments that immerse users in an artificial world. VR has its origins in the 1950s with flight simulators and has since developed to include head-mounted displays, audio components, and data gloves. While VR has applications in fields like manufacturing, education, and medicine due to its ability to provide realistic simulations, disadvantages include health concerns from extended use and the difficulty of truly replicating real-world experiences.