The advancement of VR technology through the increase in its processing power and decrease in its cost and form factor induced the research and market interest away from the gaming industry and towards education and training. In this paper, we argue and present evidence from vast research that VR is an excellent tool in engineering education. Through our review, we deduced that VR has positive cognitive and pedagogical benefits in engineering education, which ultimately improves the students’ understanding of the subjects, performance and grades, and education experience. In addition, the benefits extend to the university/institution in terms of reduced liability, infrastructure, and cost through the use of VR as a replacement to physical laboratories. There are added benefits of equal educational experience for the students with special needs as well as distance learning students who have no access to physical labs. Furthermore, recent reviews identified that VR applications for education currently lack learning theories and objectives integration in their design. Hence, we have selected the constructivist and variation learning theories as they are currently successfully implemented in engineering education, and strong evidence shows suitability of implementation in VR for education.