The purpose of Virtual Reality (VR) is to provide a consistent simulation of the realistic world and make interaction between different worlds and objects possible. Perceiving depth and distance correctly in VR is essential, but, many previous work showed an underestimation of distance in Virtual Reality with Head Mounted Displays (HMDs). The present work gives a literature review of the design challenges of such systems, distance perception issue in VR, and study perceptual research in virtual environments. We will give a review of the history of the work and efforts done in visual perception to measure the perceived distance. A particular focus will be on distance estimates methods and techniques in VR and AR developed throughout these work. Depth perception is one of the important elements in virtual reality. The perceived depth is influenced by Head Mounted Displays (HMD) that inevitability decrease the virtual content's depth perception.