In the wake of the incessant evolution of virtual reality (VR) technology, its pervasive integration into an expanding array of sectors, notably the medical field, has become increasingly conspicuous. Amid these developments, post‐traumatic stress disorder (PTSD), a prevalent and debilitating mental health condition, has garnered heightened attention from the medical community. The contemporary therapeutic landscape predominantly revolves around psychological interventions, exemplified by exposure therapy and positive thinking therapy. However, a groundbreaking advancement, namely virtual reality exposure therapy (VRET), has emerged as a prominent achievement, effectively intertwining VR technology with medical applications, particularly in the nuanced treatment of PTSD. As the realms of human‐computer interaction and brain‐computer interface undergo continuous and dynamic expansion, electroencephalography (EEG) has surfaced as a pivotal convergence point across diverse disciplines. The confluence of VRET technology with EEG signals holds the promise of enhancing the precision and objectivity of patient diagnoses. Furthermore, leveraging EEG signals enables a more nuanced and individualized approach to treatment within the framework of VRET technology. Despite extant studies that offer comprehensive summaries of VRET technology, the integration with EEG signals has thus far been a relatively unexplored terrain. This research endeavors to direct attention toward recent advancements in VRET technology within the sphere of mental health treatment. A meticulous synthesis and exposition of existing techniques and applications are presented, providing a comprehensive overview of the current landscape. The exploration extends to the developmental trajectory and prospective implications arising from the amalgamation of VRET technology and EEG technology. Furthermore, a rigorous analysis of the tangible contributions and practical significance of EEG signals in the domain of mental health treatment is undertaken, underscoring the potential avenues for their future applications and the transformative impact on the trajectory of therapeutic interventions.