As consumer Virtual Reality (VR) and Mixed Reality (MR) technologies gain momentum, there's a growing focus on the development of engagements with 3D virtual content. Unfortunately, traditional techniques for content creation, editing, and interaction within these virtual spaces are fraught with difficulties. They tend to be not only engineering-intensive but also require extensive expertise, which adds to the frustration and inefficiency in virtual object manipulation. Our proposed VR-GS system represents a leap forward in human-centered 3D content interaction, offering a seamless and intuitive user experience. By developing a physical dynamics-aware interactive Gaussian Splatting in a Virtual Reality setting, and constructing a highly efficient two-level embedding strategy alongside deformable body simulations, VR-GS ensures real-time execution with highly realistic dynamic responses. The components of our Virtual Reality system are designed for high efficiency and effectiveness, starting from detailed scene reconstruction and object segmentation, advancing through multi-view image in-painting, and extending to interactive physics-based editing. The system also incorporates real-time deformation embedding and dynamic shadow casting, ensuring a comprehensive and engaging virtual experience.Our project page is available at: https://yingjiang96.github.io/VR-GS/.