This paper explores the challenges and opportunities in achieving a high level of realism and presence in Virtual Reality (VR) experiences. Realism and presence, which refer to the level of authenticity of the virtual environment and the user’s subjective perception of being in it, respectively, are fundamental components of engaging and satisfactory VR experiences. Despite advancements in VR technology, users can often distinguish between real and virtual experiences, thereby limiting the potential of VR in various fields. This paper reviews various challenges inherent in achieving indistinguishable realism in VR, encompassing visual, auditory, and tactile components. These insights are critical in guiding the continued development of more immersive and realistic VR experiences.