Some individuals with chronic combat-related posttraumatic stress disorder do not benefit from standard psychotherapies and often drop out of treatment. Innovative treatment techniques, such as virtual-reality, may be useful to help address treatment goals by promoting presence and overcoming cognitive avoidance to improve ability to reconsolidate the traumatic memory. This pilot study examined the effect of a new virtual-reality therapy (Motion-Assisted, Multi-Modal Memory Desensitization and Reconsolidation) on symptoms of posttraumatic stress disorder in Canadian Armed Forces service members. Meaningful reductions in posttraumatic stress disorder symptoms were observed as well as notable improvements in social functioning. These preliminary findings demonstrated that our service members can benefit from this new virtual-reality therapy.