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The immersion of virtual reality (VR) can impact user perceptions in numerous forms, even racial bias and embodied experiences. These effects are often limited to head-mounted displays (HMDs) and other immersive technologies that may not be inclusive to the general population. This paper investigates racial bias and embodiment on a less immersive but more accessible medium: desktop VR. A population of participants (n = 158) participated in a desktop simulation where they embodied a virtual avatar and interacted with virtual humans to determine if desktop embodiment is induced and if there is a resulting effect on racial bias. Our results indicate that desktop embodiment can be induced at low levels, as measured by an embodiment questionnaire. Furthermore, one’s implicit bias may actually influence embodiment, and the experience and perceptions of a desktop VR simulation can be improved through embodied avatars. We discuss these findings and their implications in the context of stereotype activation and existing literature in embodiment.