Virtual Reality (VR) is a computer-created sensory experience that allows a participant to believe and barely distinguish a "virtual" experience from a real one using computer graphics, sounds, and images to reproduce electronic versions of real-life situations. This digest describes how VR works and discusses applications of VR in surgery, scientific exploration, and education and training. Future developments and policy suggestions from the National Research Council's study on uses of VR are outlined. (Contains 15 references.) (AEF)