The semi-direct speaking test format has limitations, particularly due to its lack of situational authenticity and contextualized input. To address this issue, virtual reality (VR) can be integrated into speaking proficiency tests to enhance authenticity. In this study, a newly designed VR speaking test was administered, and test-takers' performances were compared with those on a conventional computer-delivered speaking test. Additionally, test-takers' perceptions of the VR-based speaking test were examined through a post-test questionnaire. The results revealed a statistically significant difference in mean scores between the two test formats, indicating that the VR-based test enhanced test-takers' speaking performance. More specifically, a one-way MANOVA showed that test-takers performed better on nearly all scoring criteria in the VR mode compared to the computer-delivered mode, except for completion and fluency. Furthermore, the 32 test-takers who participated in the VR test highlighted the highly contextualized settings and immersive experience as the most distinctive and positive aspects of using VR in speaking assessments.