This chapter explores the transformative potential of virtual reality (VR) in neurocognitive rehabilitation, addressing its theoretical foundations, diverse applications, benefits, challenges, and future directions. VR, as an immersive and interactive technology, has gained prominence in neurocognitive recovery by leveraging neuroplasticity principles, such as task specificity, feedback mechanisms, and repetitive practice. Its ability to create ecologically valid environments enhances both motor and cognitive recovery, making it a valuable tool in rehabilitation practices. Applications of VR span across various conditions. In stroke rehabilitation, gamified and task-oriented VR modules promote motor and cognitive recovery. For traumatic brain injury (TBI), VR environments support improvements in executive functions and memory. Parkinson’s disease patients benefit from tailored VR tasks targeting gait and motor deficits, while individuals with autism spectrum disorder (ASD) experience enhanced social skills and sensory integration in controlled virtual settings. In cases of post-traumatic stress disorder (PTSD), VR facilitates trauma processing through gradual exposure therapy. The benefits of VR in rehabilitation are profound, including personalization, enhanced engagement through gamification, and the safety of practicing skills in controlled environments. Moreover, VR provides data-driven insights for monitoring progress and refining therapy. However, challenges remain, such as high implementation costs, technical usability issues, and the limited availability of longitudinal efficacy data. Future advancements promise to address these challenges. Artificial intelligence (AI) integration can enable real-time therapy adaptation, while wearable VR devices and tele-rehabilitation solutions can increase accessibility. Neurofeedback integration offers the potential for refining interventions by monitoring brain activity. By blending cutting-edge technology with therapeutic practices, VR is poised to become a cornerstone of neurocognitive rehabilitation. This chapter emphasizes its capacity to revolutionize therapy, paving the way for more personalized, effective, and accessible care.