Augmented Reality (AR) and Virtual Reality (VR) are rapidly transforming numerous domains by enabling immersive and interactive experiences. This review assesses recent trends and advancements in AR and VR and considers their critical technologies such as hardware, software, tracking and interaction methods. We examine their use in an educational, healthcare, gaming, manufacturing, retail, and real estate context demonstrating their considerable impact. We assess current challenges such as technology, user discomfort, privacy fears, and expenses. We identify future directions such as AR/VR convergence with AI, IoT, 5G/6G, new display technologies, and brain control. By contrasting AR and VR, we identify their unique qualities, advancements in research and industry, and gaps to be filled. This review emphasizes the enormous potential of AR and VR to transform human-computer interaction and a variety of fields while also recognizing that there are many more innovations required to integrate AR and VR technologies more broadly into daily life.