Abstract.[Purpose] The purpose of this study was to investigate the effects of a virtual reality exercise program on the balance of elderly persons with type 2 diabetes.[Subjects] Participants were randomly allocated to two groups: a VR-based exercise group (n=27) and a control group (28).[Methods] The VR group performed a VR-based exercise program for 50 minutes twice a week for 10 weeks, and the control group received only diabetes education without exercise activity. Balance was measured as postural sway using a force plate.[Results] Postural sway significantly decreased after the VR-based exercise.[Conclusion] The VR-based exercise program improved balance. These results suggest that VR-based exercise programs are suitable and effective preventing falls by elderly persons with type 2 diabetes.