OCCUPATIONAL APPLICATIONSWe examined team dynamics in virtual reality (VR) environments, using an integrative approach that combines traditional performance metrics with VR and sensor-based measures. We found that group dynamics in VR is a complex and multifaceted construct and is influenced by various team aspects. Team efficiency and effectiveness in VR were substantially related to team performance, physiological conditions, and behaviors. Our results have implications for ergonomics and human factors practice. First, our results underscore the need for tailored training programs that integrate VR technology to enhance teamwork skills. By leveraging VR simulations, practitioners could design interventions that improve collaboration, communication, and decision-making within occupational settings. Second, our results emphasize the importance of considering VR design principles in the development of workspaces and tools, ensuring they facilitate seamless interaction and task performance among team members. Finally, integrating the outcomes from our study into practice could help enhance productivity and well-being in occupational environments.