Virtual Embodiment is the illusion of being inside a virtual body. Typically, the user wears a Head Mounted Display and interacts with the virtual environment from the virtual body perspective. The user adapts to the virtual body representation, and the virtual body influences the user’s behaviour and perception. Virtual Embodiment has an extensive range of applications, from “owning” a third arm, to reducing (or increasing) racial bias. We will present some of the main research output of Virtual Embodiment of the last 10 years and why it is currently one of the most challenging aspects of VR.