This review introduces theoretical aspects of the rubber hand illusion (RHI) and virtual hand illusion (VHI), and discusses their possible clinical applications. It also presents technical improvements regarding the realization of the RHI and VHI and their relation to rehabilitation issues. There is presently little evidence describing the value of the RHI and VHI as indices in the diagnosis or treatment of different pathologies, likely because of a lack of standardization in reporting the results of RHI and VHI studies. In contrast, a new emerging "out-of-body illusion" appears to be an interesting new approach; however, as in RHI and VHI, there are additional consequences regarding its application in clinical settings because of its technological demands. This review considers the acceptance of technology and the realization of immersion/presence in the context of virtual rehabilitation.