Social VR's effects on players' enjoyment, engagement, and interaction have become a widely researched topic due to the progression of VR's capabilities, graphics, and distribution. The chapter explores possible psychosocial effects of VR avatar customization on transgender experiences. Based on a literary review, the chapter reflects on how versatile avatar customization provides tools for self-expression and self-affirmation for transgender individuals. The key themes center around gender experimentation and exploration in a low-stake environment, reduction and alleviation of gender dysphoria, and the induction of gender euphoria through embodiment and subsequent internal and external validation. Furthermore, the chapter evaluates the current state of avatar creation interfaces and their features catering to the transgender community by including an analysis of the VR avatar creator provided by Ready Player Me. The analysis discusses the customizability of the visual, auditory, and behavioral aspects of avatars with a focus on customizable gendered features to accommodate transgender individuals. Findings suggest an inconsistency between the limited number of features provided and the high demand for comprehensive avatar personalization. Focus is directed towards the inadequacies and limitations when it comes to gendered features such as body shapes and sizes, voice and communication options, movement styles, pronouns, and outfits. The complete exclusion of gender-neutral avatars and the restricted possibilities for mixing gendered characteristics are highlighted due to experiences of exclusion, alienation, and gender dysphoria within transgender users. The chapter concludes that enhancing avatar creation interfaces is essential for maximizing positive outcomes and supporting the diverse needs of transgender users in social VR.