We interact daily with objects in our peripersonal space (PPS), a region that serves as a motor interface between the body and the environment. Beyond their spatial location, objects may or may not belong to us, potentially leading to a conflict between ownership-related processing and sensorimotor representations. Understanding how the brain resolves this conflict is not only of theoretical interest, but is also relevant to the design of environments that assess the relationship to objects in different contexts. To examine the processes and neural mechanisms involved, participants performed a reachability judgment task on self- and other-owned virtual objects while undergoing functional magnetic resonance imaging (fMRI). Replicating previous findings at the behavioural level, the contrast between objects located in PPS and those in extrapersonal space (EPS)—independent of ownership—revealed bilateral activations in the superior and inferior parietal lobules (SPL, IPL), extending into the supramarginal gyrus and the right cuneus. Further analyses showed distinct activation patterns for self- versus other-owned objects in the PPS: Self-owned objects elicited stronger activations in right-lateralized parietal regions, particularly the IPL and SPL, whereas other-owned objects engaged a smaller cluster in the right parietal cortex and the pre-supplementary motor area (pre-SMA). Multivariate classification analyses further revealed that activity in the ventromedial prefrontal cortex (vmPFC) selectively discriminated self-owned objects in PPS, while the dorsomedial prefrontal cortex (dmPFC) discriminated self-owned objects in both PPS and EPS. Together, these results provide new insights into how the brain integrates sensorimotor and ownership-related signals for goal-directed action, and highlight potential applications ranging from virtual environment development to ergonomic design and clinical interventions.