Stroke can lead to dysfunction of movement, sensation, cognition and other functions, eventually affect the quality of life of patients. Many patients suffer from severe and persistent upper limb dysfunction. Upper limb rehabilitation has always been a focus in clinical practice and scientific research of rehabilitation field. As an emerging technology, virtual reality (VR) provides simulated environments for patients to enhance their participation and experience, and has been more and more widely used in stroke rehabilitation. This paper reviews the application and research progress of VR in upper limb rehabilitation after stroke, discusses the current evidences based on both the independent application of VR and the application of VR combined with other rehabilitation interventions, and indicates that VR can play a positive role in promoting the upper limb strength and coordination of stroke patients and enhancing their motivation to participant in rehabilitation. In the future, more high-quality studies are needed to further confirm the efficacy and optimal parameter settings.