The escalating integration of virtual reality (VR) within higher education marks a significant leap in transforming pedagogical methodologies and student engagement. This comprehensive review delves into the pivotal innovations of VR within the university landscape, highlighting its potential to redefine the learning experience. By examining diverse VR applications across specific academic domains, this article illustrates how immersive technology enhances comprehension of intricate concepts by providing captivating, interactive environments. Moreover, it navigates the impact of VR on fostering experiential learning, cultivating active participation, and augmenting student motivation within educational settings. Beyond showcasing successful implementations, this review delves into the challenges of adopting VR in higher education, encompassing technical hurdles, pedagogical adaptations, and ethical considerations. Moreover, it envisages future developments, anticipating the continued evolution of VR’s role in reshaping the higher education pedagogical paradigm. This exhaustive examination synthesizes current research, offering a holistic perspective on VR’s transformative potential within higher education, catering to educators, researchers, and stakeholders seeking to harness immersive technologies for pedagogical advancement and enriched student engagement.