While VR has shown benefits such as improving alertness, recalling memories and cognitive training for older adults, it is challenging to deploy it in aged care settings due to the complexity of social care, physical and healthcare needs of the residents. This paper presents a two-phase study that aims to explore the challenges of deploying VR technology in aged care settings. Phase one involved a thematic analysis of video recordings of 14 VR sessions, during which five residents of an aged care facility were invited to experience and interact with VR systems. Phase two aimed to explore the challenges further by analyzing semi-structured interviews with 11 staff members who had experience in coordinating VR activities in aged care homes. The results revealed a range of issues that need to be considered when deploying VR systems in aged care settings, including: usability issues related to VR systems; barriers caused by residents' mobility constraints; physical discomfort; and challenges in providing guidance and support for residents using VR.