["International Journal of Consumer Studies, Volume 50, Issue 5, September 2026. ", "\nABSTRACT\nSocial media has emerged as a prominent tool for marketers offering direct access to billions of consumers. Its ability to build networks and share content propagates influencer marketing, where brands partner with trusted online personalities (influencers) to promote products or services. Currently, when marketers need more control and scalability, virtual influencers (VIs) are evolving as novel phenomena for endorsement and communication. This study presents a systematic literature review to provide a comprehensive view on user engagement with VIs. Guided by the Theory‐Context‐Characteristics‐Methodology (TCCM) and Input‐Mediator‐Outcome (IMO) frameworks, the study examines how VIs foster engagement and shape behavioral outcomes. The SPAR‐4‐SLR protocol ensured rigor, with 32 articles published in 21 ABDC‐listed journals retrieved from Scopus and Web of Science. The study draws four interrelated themes from the literature: (i) appearance, characteristics, and credibility; (ii) influencer type; (iii) content quality and expertise; and (iv) privacy concerns and risks. Theoretically, VIs and user engagement are argued primarily by using the uncanny valley, source credibility, parasocial interaction, anthropomorphism, and computers are social actors (CASA). Contextually, VIs and user engagement are examined on social media marketing platforms with minor appearances of immersive digital environments, online booking, live‐streaming, corporate social responsibility (CSR) communication, and tourism promotion. Within the IMO framework, we find influencer, content, comparison, receiver, brand, social, technological, and cause‐related factors that operate as inputs, mediators, moderators, and outcomes. Methodologically, experimental and cross‐sectional designs dominate. We propose a roadmap urging scholars to integrate AI elements into theoretical models, cross‐validate scales across cultures and economies, further combine theories, and adopt multiplatform longitudinal approaches in emerging markets to capture the evolving nature of VIs. This review advances knowledge by reconciling contradictory findings, integrating frameworks for thorough evaluation, and offering actionable insights for practitioners navigating the dynamic landscape of virtual influencer marketing.\n"]