Objective In the past two decades, mindfulness, rooted in Buddhist traditions, has gained considerable scientific interest. Virtual reality (VR) technology, in particular head-mounted displays, offers immersive experiences and is examined in this systematic review in terms of VR-based mindfulness interventions and their effects on psychological and physiological health outcomes. Methods Using the Preferred Reporting Items for Systematic Review and Meta Analyses guidelines, a systematic search was conducted with the following search terms: [(mindful* OR “meditat*”) AND (“virtual reality” OR “VR”) AND (health OR physio* OR psycho* OR mental OR physical)]. Considering critiques of methodological quality in existing systematic reviews, this study adopts Boell and Cecez-Kecmanovic’s hermeneutic approach, critically evaluating research outcomes. Results Psychological benefits include improved anxiety, mindfulness, emotions, disease patterns, affect, stress, (presleep) arousal, meditation and others. Physiological effects focus on neurobiological markers, heart rate/heart rate variability, pain, blood pressure, cortisol and galvanic skin resistance. Evidence mapping shows that more research has been conducted in the last 6 years, particularly by North American and South Korean authors, and points to gaps in study methodology. In addition, attention regulation is identified as a primary mindfulness mechanism in VR scenarios, often in nature-based virtual environments, with mainly single-session studies lasting 5 or 10 minutes. Discussion Critical mapping reveals the need for additional studies to support and extend initial findings in this emerging research field. Methodologically, there is a call for more true-experimental studies to enhance rigor. From a content perspective, VR protocols are currently still strongly characterized by single-session interventions, which makes it especially difficult to make a dose–response statement regarding long-term effects. Conclusion In summary, the studies provide important initial findings on psychological and physiological effects of VR-based mindfulness interventions on health. In addition, the need for more methodologically rigorous studies was emphasized, along with other methodological adjustments that must be carefully considered in the planning of future studies.