Hand tracking has become an integral feature of recent generations of immersive virtual reality head-mounted displays. With the widespread adoption of this feature, hardware engineers and software developers are faced with an exciting array of opportunities and a number of challenges, mostly in relation to the human user. In this article, I outline what I see as the main possibilities for hand tracking to add value to immersive virtual reality as well as some of the potential challenges in the context of the psychology and neuroscience of the human user. It is hoped that this paper serves as a roadmap for the development of best practices in the field for the development of subsequent generations of hand tracking and virtual reality technologies.