Fear and anxiety induced by threatening scenarios, such as standing on elevated surfaces, have been shown to influence postural control in young adults. There is also a need to understand how postural threat influences postural control in populations with balance deficits and risk of falls. However, safety and feasibility issues limit opportunities to place such populations in physically threatening scenarios. Virtual reality (VR) has successfully been used to simulate threatening environments, although it is unclear whether the same postural changes can be elicited by changes in virtual and real threat conditions. Therefore, the purpose of this study was to compare the effects of real and virtual heights on changes to standing postural control, electrodermal activity (EDA) and psycho-social state. Seventeen subjects stood at low and high heights in both real and virtual environments matched in scale and visual detail. A repeated measures ANOVA revealed increases with height, independent of visual environment, in EDA, anxiety, fear, and center of pressure (COP) frequency, and decreases with height in perceived stability, balance confidence and COP amplitude. Interaction effects were seen for fear and COP mean position; where real elicited larger changes with height than VR. This study demonstrates the utility of VR, as simulated heights resulted in changes to postural, autonomic and psycho-social measures similar to those seen at real heights. As a result, VR may be a useful tool for studying threat related changes in postural control in populations at risk of falls, and to screen and rehabilitate balance deficits associated with fear and anxiety.