The high-speed levitating pod hurtled through vacuum tubes as it reached speeds of up to 107 miles per hour at the company's DevLoop test site in Las Vegas, Nevada, with Josh Giegel, Hyperloop's Chief Technology Officer, and Sara Luchian, Director of Passenger Experience, on board.
Virgin Group founder Branson said: "For the past few years, the Virgin Hyperloop team has been working on turning its groundbreaking technology into reality.
"With today's successful test, we have shown that this spirit of innovation will in fact change the way people everywhere live, work, and travel in the years to come."
Prior to the human passenger test, they had run 400 unoccupied tests and safety was paramount.
Josh said: "When we started in a garage over six years ago, the goal was simple - to transform the way people move. Today, we took one giant leap toward that ultimate dream, not only for me, but for all of us who are looking towards a moonshot right heer on Earth."
The goal is to have passengers and cargo traveling through vacuum tubes at 600 miles an hour or faster in the future.
The idea of the Hyperloop was first proposed by Tesla's CEO Elon Musk back in 2012.
The concept was explicitly "open-sourced" by Musk and SpaceX, and they encouraged others to develop the idea.