A smiling Edward was filmed sitting astride the model horse as he clutched its reins and moved his head about to take in the simulation, at the event in the grounds of Windsor Castle, Berkshire, on Thursday.
Edward, 59, shared a joke with two people who helped him put the headset on.
At one point Edward said “very good” as he swivelled his head about.
Looking towards the ground, he later added “ah, you can actually see…” but did not elaborate further.
He later added “should we stop it there?” before smiling and dismounting.
Moving images on a small screen behind the prince appeared to correspond with what he was seeing through the headset.
Edward later mingled with visitors and spoke to stallholders in the show’s shopping village area.
The late Queen, a lifelong horse lover, visited the event in May last year.
The Royal Windsor Horse Show encompasses a variety of equestrian sport, including the Land Rover International Carriage Driving Grand Prix, national and international show jumping competitions and equestrian displays.