Up to 18.5% of veterans returning from OIF/OEF are diagnosed with posttraumatic stress disorder (PTSD). In addition to symptoms of anxiety (intrusive thoughts, re-experiencing, hyperarousal, and avoidance), PTSD can result in social maladjustment, poor quality of life, and medical problems. Other emotional problems include guilt, anger, and unemployment, impulsive or violent behavior, and family discord. Many veterans seeking treatment for PTSD also seek disability compensation for debilitating occupational impairment. There are few administrative or research data to indicate veterans are recovering from PTSD. Exposure therapy, a form of behavior therapy, alleviates anxiety symptoms, but may not address the anger, depression and social impairment that accompanies this disorder. In this presentation, we will discuss an intensive treatment program, known as Trauma Management Therapy (TMT), which combines individual virtual reality (VR) assisted exposure therapy with group social and emotional rehabilitation skills training, delivered in a 3 week format. The presentation will demonstrate the VR environment (Virtual Iraq), will discuss how often/successfully various VR elements are integrated into a comprehensive treatment program, and the adaptability of the program for active duty military personnel, as well as veterans. We will discuss the format of the intensive program as well as factors such as compliance and drop-out rates, comparing these important clinical variables to more traditional outpatient treatment programs. Additionally, we will address common clinical concerns regarding the use of VR exposure therapy for individuals suffering from PTSD.