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Here we report the first empirical findings on virtual lucidity (VL), a new construct similar to lucidity during dreaming, but regarding awareness that one is having a virtual experience. VL concerns the depth and breadth of this awareness, as well as the extent it affords regulatory monitoring and control. To study VL, we adapted a measure from lucid dreaming research to assess whether more VL predicted lower fear, but not less enjoyment, during a virtual reality (VR) threat scenario of walking, and being asked to step off, a wooden plank seemingly high above a city. We examined predictors of VL and related outcomes across a community sample and lucid dream trainees at a meditation retreat center. In line with hypotheses, higher VL predicted less fear, more enjoyment, and greater likelihood of stepping off the plank. Moreover, a number of dispositional factors predicted greater VL and lower fear. Lucid dream …