A VR, or vibration reduction, lens is incorporates image stabilization by lessening the impact of vibration on the lens when taking photographs. The goal is to reduce blur that shows up in photos when the camera or hand shakes during image capture.
In Nikon cameras, VR technology is a function of the lens as opposed to a function of the image sensor. This means that each camera's lens uses vibration reduction specifically tuned to that lens. Algorithms are used to enhance the stabilization, and separate algorithms are used for confirming stabilization. This allows for greater composition of an image prior to capturing it. The use of image stabilization can often eliminate the need for a tripod when taking still shots.