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Beginning with a general description of virtual reality (VR) applications, this paper investigates three areas in which the application of VR in medicine seems feasible: education and training systems, therapy (as an assistance tool) and as a development environment for new methods and procedures. Examples of current implementations are discussed for each application. The final discussion gives an overview of advances in algorithms and computer power which may be expected and the resulting feasibility of using VR applications in everyday medical practice.