This paper delves into the transformative use of Virtual Reality in the public health domain, focusing on its psychological effects, the effectiveness of VR-based patient education interventions, and ethical considerations surrounding the use of personal data and privacy. Through the examination of peer-reviewed studies, the research found that VR offers innovative solutions on health education and mental health outcomes. The immersive digital environment of VR offers breakthroughs in delivering patient education and psychological interventions. As VR devices continuously collect vast amounts of sensitive user information to create unique experiences, the paper discusses the need for data protection and ethical guidelines to protect user privacy and gain consumer trust. However, it is important to address the significant ethical and social issues, and adverse reactions, such as cyber-sickness or escapism, to fully realize the benefits of Virtual Reality.