Immersive technology is redefining how therapy is delivered. Virtual reality (VR) and digital therapeutics in mental health have expanded the toolkit for treating conditions such as PTSD, phobias, and social anxiety through controlled, safe exposure environments. VR simulations allow patients to confront fears or stressors in a structured therapeutic context, while digital therapeutics platforms offer app-based interventions grounded in CBT or mindfulness. These tools are proving especially valuable in remote care and youth mental health settings, where engagement and accessibility can be challenges. The integration of biometric feedback into virtual environments adds a new dimension to real-time emotional monitoring and response. As clinical validation continues, VR is emerging as more than a novelty—it’s a transformative medium for mental healthcare delivery.