Wearable biosensors are increasingly incorporated in immersive Virtual Reality (iVR) applications. A trend that is attributed to the availability of better quality, less costly, and easier-to-use devices. However, consensus is yet to emerge over the most optimal combinations. In this review, the aim is to clarify the best examples of biosensor usage in combination with iVR applications. The high number of papers in the review (560) were classified into the following seven fields of application: psychology, medicine, sports, education, ergonomics, military, and tourism and marketing. The use of each type of wearable biosensor and Head-Mounted Display was analyzed for each field of application. Then, the development of the iVR application is analyzed according to its goals, user interaction levels, and the possibility of adapting the iVR environment to biosensor feedback. Finally, the evaluation of the iVR experience was studied, considering such issues as sample size, the presence of a control group, and post-assessment routines. A working method through which the most common solutions, the best practices, and the most promising trends in biofeedback-based iVR applications were identified for each field of application. Besides, guidelines oriented towards good practice are proposed for the development of future iVR with biofeedback applications. The results of this review suggest that the use of biosensors within iVR environments need to be standardized in some fields of application, especially when considering the adaptation of the iVR experience to real-time biosignals to improve user performance.