Given Bachelor's thesis describes the development of Virtual Reality. It starts with object modeling and ends with setting up VR devices. The main purpose of this paper is to learn how to develop and create VR applications. In the end of this thesis the reader should know the basics of modeling in Autodesk Maya and also the fundamentals of creating Virtual Reality in CryEngine 5 using self-made objects. The second goal is to study and acquire knowledge about the game engine CryEngine 5 and the third goal is to give overview of basic workflow when creating VR applications. Thesis is based on Virtual Reality of Tallinn Town Hall Square that was developed by three students including author of this thesis. All the pictures and examples used are taken from the project. The outcome of this thesis is that the creation of Virtual Reality is a long process that goes with even longer studying process. Satisfying end result is accomplished only with many hours of practice while one must learn all the tools and shortcuts of necessary programs. Given Bachelor’s consists of three sections. The first section describes objects creation, 3D modeling and export to CryEngine in Autodesk Maya. In the second section author gives a complete tutorial of using CryEngine 5 as a game engine for Virtual Reality. Section describes project creation, object import, adding materials and using different tools for the best end result. The third section gives an overview of Tallinn Town Hall Square project and includes also possibilities for further development.