Virtual reality (VR) demonstrates significant potential to improve rehabilitation outcomes for musculoskeletal conditions and chronic pain. However, the field faces notable challenges, including inconsistent terminology, a lack of specialized/comprehensive software solutions, and an overwhelming variety of hardware options, which can make it difficult for healthcare professionals without technical expertise to identify the most suitable tools for clinical use. This article explores the current state of VR in the rehabilitation of musculoskeletal conditions and chronic pain, focusing on terminology discrepancies, available hardware and software solutions, and key professional associations shaping the field. A review of the current state of terminology is essential to address inconsistencies that risk perpetuating misuse and limiting the applicability of research findings. Building on this review, we propose a conceptual framework for understanding VR that aligns more closely with the capabilities of current VR technology. A comprehensive overview of VR hardware and software can assist healthcare professionals in selecting appropriate technologies for clinical practice, guide researchers in designing interventions, and inform developers on unmet needs in the field. Furthermore, understanding key professional associations provides valuable direction for those engaged in virtual rehabilitation, enabling them to access resources, foster collaboration, and stay informed about the latest advancements in the domain.