Virtual reality (VR), also called phantomatics, is an image of artificial reality created entirely in three-dimensional graphics with the use of information technology. VR makes it possible to experience the imaginary world as if it was real, where sensory data are delivered to the brain through a specialized system. The purpose of virtual medicine is to minimize direct contact and impact on human body during treatment. Taking into consideration the increasing accessibility of high quality electronic devices, their immense computing powers, and the continuously developing Internet infrastructure, the advancement in this area is only a matter of time. Therefore, the aim of the study was to identify the applications of VR in medicine, focusing on the areas of psychiatry and rehabilitation and considering guidelines for future research.