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Virtual Reality (VR) technologies have entered many aspects of daily life (e.g., workplace, education, gaming). VR users report that time flows faster when immersed in a virtual environment. Such an effect is supported by recent scientific evidence (Mullen & Davidenko, 2021). Indeed, a familiarity effect could foster such a time compression effect. To investigate this possibility, a between-subject design was adopted: in one condition, participants explored a virtual environment through a head-mounted display (HMD), whereas in the control condition, participants explored the same environment through a standard monitor. Participants were all instructed to produce an interval of 4 minutes so that longer produced durations in an interval production task were evidence of underestimation. Adopting a prospective time estimation paradigm, the time intervals produced were compared between the two conditions. Results confirmed the time compression effect: participants in the VR condition reported longer produced intervals than participants in the control condition. Furthermore, the significant interaction with levels of prior experience with VR technologies suggests that time compression effects may be more pronounced for VR newcomers, thus favoring an interpretation in terms of familiarity. The present findings provide valuable insights into the perception of time in virtual environments, suggesting the importance of continued research in this emerging technology. Limits, implications, and the need for further research are finally discussed.