Background: The resurgence of VR in recent years has been exciting for health educators and researchers, yet little is known about VR's effectiveness. This systematic literature review aims to provide an overview of the prevalence of VR in alcohol studies and assess its effectiveness. Methods: Peer reviewed articles were systematically searched from online databases including PubMed, ProQuest, Web of Science, Science Direct, Emerald, OVID, Taylor & Francis, and EBSCO. Grey literature and conference papers were excluded. Studies that passed the inclusion criteria were qualitatively assessed. Findings: Of the 1739 studies retrieved, eight studies met the inclusion criteria. Three main applications of VR were found; 1) Cue-exposure therapy, 2) Driving simulators for examining relationships between alcohol and neurological activity, and 3) Training of healthcare professionals. Only one study focused on adolescents, and only one study reported longitudinal outcomes. Conclusion: VR remains underutilised in alcohol studies. VR was indicated positive results across the three contexts, however longitudinal evidence remains limited and therefore restricts the generalisability of findings. More long-term empirical research is warranted.