This paper will undertake a critical review of the impact of virtual reality tools on the teaching of history. Virtual reality is useful in several different ways. History educators, elementary and secondary school teachers and professors, can all profit from the digital environment. Challenges arise quickly however. Virtual reality technologies show great pedagogical promise in the presentation of research. It is also asserted that these technologies provide real-world immersion in the 'historical past' in a way that was previously not possible. Can these systems truly take the place of classrooms, elementary and secondary, and the research projects of graduate studies? Ultimately, technological optimists argue that these technologies create an 'alternate reality'. Can history educators agree to such an 'alternate reality'? The principle conclusions drawn in this paper include a need for further development of virtual simulations, both in terms of their realism and the immediacy of the classroom experience. Further practical experimentation by history educators in the research environment is also key.