This randomized controlled trial aimed to evaluate the effectiveness of a Virtual Reality (VR)-mediated gamified rehabilitation program compared with conventional physical therapy in children with spastic diplegic cerebral palsy. Forty-two children aged 7-15 years with Gross Motor Function Classification System (GMFCS) Levels II and III were recruited from Rafsan Neuro Rehab Center, Peshawar. Participants were randomly allocated into two equal groups. The intervention group received VR-based gamified rehabilitation using Xbox Kinect along with physiotherapy, while the control group received conventional physiotherapy only. Both groups completed 18 treatment sessions over six weeks. Outcome measures included the Timed Up and Go Test (TUG), Pediatric Balance Scale (PBS), Trunk Impairment Scale (TIS), and Gross Motor Function Classification System (GMFCS). The findings demonstrated that VR-mediated rehabilitation significantly improved functional mobility, balance, and trunk control compared with conventional therapy. The study concludes that VR-based rehabilitation is an effective, motivating, and clinically useful intervention for children with spastic diplegic cerebral palsy and may improve rehabilitation outcomes and functional independence.