Education needs to change working life in order to improve and ensure the latest technology has been adopted to cater the new era of industrial revolution. To reach this, a technological-oriented education is required for students. In this section, Virtual Reality (VR) technology is useful to get empirical experience in tertiary education. Moreover, virtual world provides a hazard-free and explorative learning experience. This paper reviews the application of VR in engineering education. This work also covers the usage of VR application which begins with the history of VR application, reasons of VR in education, key elements for immersive VR collaboration, and types of VR systems. The input / output devices which involved in VR systems were also discussed. This paper also reviews VR systems classification and usage of VR in education systems. VR in design application was finally reviewed followed by the advantages and disadvantages of VR systems and VR hardware. The last section provides future trends and conclusion.