Purpose: This study examined the effects of a virtual reality-based exercise program on the functional recovery of balance and gait in chronic stroke subjects. Methods: A total of 42 chronic stroke patients were enrolled in this study. The participants were allocated randomly to 2 groups: a VR (n=22) and control group (n=20). Both groups received treadmill training for 3 sessions (10 minutes each), 30 minutes per week over a 6 week period. The VR group practiced additional virtual reality programs consisting of 3 programs for 10 minutes each. The data was analyzed using a paired t-test and independent t-test to determine the statistical significance. Results: The virtual reality-based exercise group showed significant increases in gait velocity, cadence and stride length compared to the control group (p<0.05). However, there were no significant differences in static balance. Conclusion: These results support the perceived benefits of exercise programs that incorporate virtual reality to augment the balance and ambulation of stroke patients. Therefore, virtual reality is feasible and suitable for stroke patients