Augmented Reality (AR) and Virtual Reality (VR) technologies rapidly transform the healthcare landscape, offering innovative solutions to enhance patient care, medical education, and therapeutic interventions. This chapter delves into the current state of AR and VR in healthcare, exploring their diverse applications and their profound impact on reshaping various aspects of the industry. The chapter examines the multifaceted applications of AR in healthcare settings, including patient education and engagement through interactive visualizations, enhancing diagnostic procedures through real-time guidance, gamified rehabilitation programs, and empowering patients with chronic conditions through real-time feedback and monitoring. Additionally, it explores the transformative potential of VR in exposure therapy for anxiety and phobias, pain management and distraction, surgical training and simulation, and mental health assessments and interventions. While highlighting the numerous benefits and applications, the chapter also addresses the challenges and considerations associated with implementing AR and VR in healthcare, such as accessibility and cost, data privacy and security concerns, and user experience and design considerations. This chapter paves the way for discussions on the future of these immersive technologies in healthcare by providing a comprehensive overview of the current landscape and exploring the opportunities and challenges. It underscores the immense potential of AR and VR to lead to a more patient-centered, efficient, and accessible healthcare system that prioritizes personalized care and improved outcomes.