A virtual-sunroof system for providing a virtual sunroof at an interior of a vehicle for viewing by a passenger of the vehicle. The system includes a virtual-sunroof imaging device configured and arranged at the vehicle to collect image information from an environment above the vehicle and create digital image data using the image information. The system also includes a virtual-sunroof projection device configured and arranged in the vehicle to be in communication with the virtual-sunroof imaging device for providing a virtual sunroof display. The virtual sunroof display provided (a) is viewable above a head of the passenger, (b) is formed using the image data, (c) represents accurately at the interior of the vehicle a rendition of the environment above the vehicle, and (d) has a size, shape, and location corresponding generally to a size, shape, and location that an actual conventional-type sunroof would have in the vehicle.