We are living in a world where we cannot imagine our lives without the Internet and mobile communication systems. Every second, the amount of data being transferred from one device to another is unimaginable. Our world will move from the Internet of Things (IoT) to the Internet of Everything (IoE) very soon. We are used to the traditional storage system of cloud computing. Edge computing is a distributed computing system that processes the data closer to the devices from where the data is generating, such as local servers, IoT devices, etc. Cloud computing relies on a centralized system, which enables on-demand access to shared resources, allowing users to manage the applications without the investment in physical infrastructure. Edge computing has significant use in reducing latency, enhancing real-time capabilities, and improving bandwidth utilization. Augmented reality (AR) and virtual reality (VR) an emerging areas of wireless communication systems where edge computing shows immense progress in these systems. In the field of AR and VR, lots of computing devices are connected to the Internet. If the power source of these devices is the embedded battery, then in traditional cloud computing systems, it will face issues like slow response speed, poor security, and poor privacy. To make the system more reliable and sustainable, we are moving to distributed edge computing systems. In this paper, we will make a comprehensive study of edge computing and cloud computing and it’s applications, limitations, and the impact in the field of AR and VR.