Virtual reality (VR) has been suggested as a cost-effective instrument for treating mental illness. However, such investigations have been confined to researchers’ laboratories. This study, therefore, aimed to assess VR’s readiness for therapeutic use through understanding Australian mental health practitioners’ perceptions of VR’s applicability in mental health. Responses were obtained from practitioners from different regions of Australia using an online survey designed based on the Unified Theory of Acceptance and Use of Technology (UTAUT) model. Descriptive statistics and thematic analysis were employed to analyse the data. The findings reveal that although practitioners believed in the usefulness of VR for enhancing mental health treatment, issues such as maintaining therapeutic alliances, cost and accessibility of VR equipment, absence of research-based evidence, lack of safety guidelines, and privacy concerns, led to their reluctance to incorporate VR into clinical practice. We believe tackling these challenges will accelerate VR’s adoption in clinical settings.