The purpose of this bachelor work was to create a small part of the city using Blender and Unreal Engine 4 with a help of Virtual Reality headset Oculus Rift. To be more specific, there was created a model of a small part of Lasnamae district, located near the Tondiraba Ice Hall which includes ice hall itself, some houses: 5 and 9 stories high apartment blocks, roads, playground, various road lights, traffic signs, bus stops, fences, barriers and other small objects. All the objects listed above were modeled using 3d modeling software called Blender. There were free trees and grass models used for the project and bushes were taken from the originally presented Starter Content of the Unreal Engine 4, developed and supported by Epic Games. All the modeled objects were imported to the Unreal Engine 4 and placed across the map according to their real location. Also, the parameters of materials, lighting and landscape has been configured. Textures were created in the raster graphics editor GNU Image Manipulator Program 2 or simply GIMP 2. Textures were made using photos of various objects surfaces. The project is too complex to be done alone, so there were two bachelor works made, describing various parts of the project. This part of thesis is about the Unreal Engine 4 game engine, specifically about models importing, adding foliage, cables, collision, about model's materials, lighting and landscape configuring.