Virtual reality (VR) and augmented reality (AR) differ primarily in how they interact with the real world. VR immerses users in a completely computer-generated environment, isolating them from the physical world and providing a fully immersive experience. In contrast, AR overlays digital elements onto the real world, enhancing the user's perception of their environment without disconnecting from it. While VR is often used for gaming and simulations, AR has applications in fields such as education, healthcare, and retail, blending the physical and digital spaces.