Virtual reality (VR) uses advanced display and immersive audio technologies to create an interactive, three-dimensional environment. Think of experiencing a roller coaster without actually being on one. Or walking through the great pyramids of Egypt from the comfort of your living room.
Augmented reality (AR) uses technology to overlay digital content such as video and 3D models onto the physical world to provide information and embellish our experiences. Think of using AR to help you assemble a piece of furniture. Or use it to see if a table would fit in your dining room.
Extended reality (XR) is an umbrella term encapsulating AR, VR, and everything in between.