Background: The study was motivated by the need to enhance children's literacy skills through innovative teaching methods. This research aims to address limitations in regular classroom teaching by exploring embodied learning and virtual reality (VR) as potential solutions. Objectives: The primary aim of the study was to investigate the effects of embodied learning, with and without VR, on children's literacy skills. Methods: A randomised controlled trial was conducted with 108 children aged 6-7 years. Participants were randomly assigned to either: a Control group with regular classroom teaching, a VR group using body-phonemes with VR headsets and a Mirror group using body-phonemes without VR headsets. The children were evaluated on literacy skills before and after a 2-week intervention period. Results and Conclusions: The study found significant improvements in letter-sound knowledge for both the VR and Mirror groups compared to the Control group. These findings suggest that embodied learning, whether using VR or not, can effectively enhance children's literacy skills. Practical and theoretical implications are discussed.