This paper presents a wearable virtual reality system with a wireless network of inertial sensors for lower limb monitoring. The system comprises seven sensor nodes sending data wirelessly to a master node. The information is then collected, organized, and sent to a screening device via a serial interface. An application executed either on a smartphone or a personal computer features an avatar which represents the received data and mimics the sensed movements of the patient, providing online feedback during and after the execution of a therapy. The data resulting from the therapy execution can be uploaded to a web server to facilitate the assessment and decision-making by health professionals. A pendulum featuring a rotary optical encoder is used for sensor functional behavior validation. In addition, the orientation angles measured by the proposed system are compared with respect to measurements from the motion analysis software Kinovea. The delay between the patient's body movement and the avatar is 33 ms, which is acceptable for visual feedback. This system is portable, inexpensive and enables a patient to complete physical therapy sessions at home or anywhere, with the advantage of enabling visual feedback through an avatar during rehabilitation therapy and allowing the reproduction of a therapy session for further analysis.