As an artificial space extended from the physical environment, the virtual environment (VE) provides more possibilities for humans to work and be entertained with less physical restrictions. Benefiting from anonymity, one of the important features of VEs, users are able to receive visual stimuli that might differ from the physical environment through digital representations presented in VEs. Avatars and contextual cues in VEs can be considered as digital representations of users and contexts. In this article, we analyzed 21 articles that examined the creativity-boosting effects of different digital user and contextual representations. We summarized the main effects induced by these two digital representations, notably the effect induced by the self-similar avatar, Proteus effect, avatar with Social Identity Cues, priming effect induced by contextual representation, and embodied metaphorical effect. In addition, we examined the influence of immersion on creativity by comparing non-immersive and immersive VEs (i.e., desktop VE and headset VE, respectively). Last, we discussed the roles of embodiment and presence in the creativity in VEs, which were overlooked in the past research.