Amid the aftermath of the COVID-19 pandemic, the societal role of theatre is undergoing renewed scrutiny, prompting a reevaluation of its capacity for critical intervention and response. In this context, the emergence of new hybrid and digital forms, particularly the intersection of theatre with extended reality (XR) technologies, such as virtual reality (VR), presents intriguing possibilities. This article centres on the convergence of theatre and VR, with a focus on the pioneering efforts by Tender Claws and Piehole, Agile Lens, Single Thread Theatre, the Ferryman Collective, and Onboard XR. Some of their innovative productions, respectively Tempest (2020), A Christmas Carol (2021), Collider (2021), Gumball Dreams (2022), and NPC (2022), forge distinctive communities, altering audience dynamics through avatars. By examining these recent endeavours in North America, this study delves into VR’s intersections with and departures from analogue community theatre practices. As the metaverse unfolds, new questions arise: can it liberate theatre from systemic constraints or might it risk transforming experiences into tradable commodities, aligning with mainstream neoliberal democratic politics? This inquiry not only probes the transformative capabilities of VR theatre, but also dissects its broader sociopolitical implications at the intersection of art, technology, and society.