Virtual Reality (VR) and Augmented Reality (AR) are revolutionizing rehabilitation by offering innovative solutions across various medical specialties, particularly in physiotherapy. This chapter delves into the principles and current applications of VR and AR in healthcare, highlighting their success in enhancing motor skills, cognitive therapy, pain management, and psychological rehabilitation. VR and AR have been instrumental in improving patient outcomes, such as accelerating motor skills recovery post-stroke by 30%, reducing pain perception by 35% in burn treatments, and improving memory performance in Alzheimer’s patients by 25%. Furthermore, VR facilitates surgical training, reducing operation times by 20%, and assists in treating mental health conditions like PTSD and phobias. However, challenges such as technological barriers, data privacy concerns, and user adoption issues persist. Future advancements in haptic feedback, AI-driven personalized therapies, and tele-rehabilitation promise to further integrate VR and AR into effective and inclusive rehabilitation practices. This chapter aims to provide insights into the transformative potential of immersive technologies in rehabilitation, emphasizing their role in creating more effective and inclusive therapeutic environments.