Virtual Reality (VR) is a technological revolution, its influence has gradually penetrated into the domain of psychological therapy, and has achieved some effectiveness. The application of virtual reality technology in psychotherapy has been continuously expanded, from the initial treatment of various types of phobias, to the treatment of post-traumatic stress disorder, eating disorders, sexual dysfunction, schizophrenia, hallucinations and addiction and other aspects of research and psychotherapy. Practitioners in psychotherapy and counseling need to keep up with technological trends and carefully study how these technologies can be applied to improve the quality and efficiency of psychotherapy, thus bringing new benefits to patients. This paper mainly reviews the latest progress of virtual reality technology in the field of psychotherapy, summarizes the problems and controversies in the application of this new technology, and tries to analyze the application prospect of this technology in the field of psychotherapy in the future.