Background: The demand for effective disaster preparedness training in hospitals is steadily increasing, as healthcare staff need to handle emergencies efficiently while providing patient care. However, conventional training methods like live drills and tabletop exercises can require significant resources, limit participation, and disrupt hospital operations. In light of these challenges, Virtual Reality (VR) training has emerged as a modern solution, offering an innovative way to improve training efficiency without interfering with routine hospital activities. This study, therefore, examines how VR training compares to traditional methods in preparing hospital personnel for disasters, focusing specifically on effectiveness and cost. Methods: We reviewed studies concerning the effectiveness and economic assessments of VR compared to traditional methods. To answer the research questions, we followed the Canada Drug Agency's guides on conducting a health technology assessment. Articles were identified from both peer-reviewed and gray literature. Results: The review highlights eight pertinent studies demonstrating VR's advantages, including boosting knowledge retention, performance, and overall confidence among healthcare professionals in disaster preparedness. Furthermore, the economic analysis indicates that although the initial costs of VR synchronous training may be higher, the long-term savings from reduced ongoing training and maintenance can lead to greater cost efficiency. In addition, while VR training presents safety benefits, challenges such as cybersickness and accessibility concerns have also been observed. Conclusion: VR training offers considerable advantages over traditional disaster preparedness methods and significantly improves healthcare workers' confidence and skills. Despite the high upfront costs, the potential long-term financial benefits appear promising. To maximize results, funding for VR initiatives must emphasize demonstrated effectiveness alongside ongoing research to explore broader applications and address the challenges posed by these emerging technologies.