Virtual reality (VR) is now being designed and deployed in diverse sensitive settings, especially for therapeutic purposes. For example, VR experiences are used for diversional therapy in aged care and as therapy for people living with conditions such as phobias and post-traumatic stress. While these uses of VR offer great promise, they also present significant challenges. Given the novelty of VR, its immersive nature, and its impact on the user's sense of reality, it can be particularly challenging to engage participants in co-design and predict what might go wrong when implementing these technologies in sensitive settings. This workshop provides a forum for researchers working in this emerging space to share stories about their experiences of designing and evaluating VR applications in settings such as aged care or mental health therapy. The workshop will develop a manifesto for good practice, outlining co-design strategies and ethical issues to consider when designing and deploying VR in sensitive settings.