Extended Reality (XR), which includes Augmented Reality (AR), Virtual Reality (VR), and Mixed Reality (MR), is transforming biomedical engineering and clinical teaching by combining digital and real worlds. This research investigates the full range of XR technologies, emphasising their potential to improve medical device maintenance and alter medical education through immersive simulations, digital twin design, sophisticated surgical planning, and interactive patient care. XR data-driven interfaces work seamlessly with Artificial Intelligence (AI), allowing for more in-depth assessments of patient data and more individualised therapeutic tactics. Different biomedical applications are investigated, such as surgical training, where risk-free virtual simulations enhance learners’ skills and expedite mastering, and preoperative planning, where 3D overlays improve anatomical understanding and operational outcomes. Moreover, the adoption of XR in the clinical engineering field can improve the training of technicians, support remote collaboration and troubleshooting, and streamline Health Technology Assessment by aiding the evaluation of device usability, ergonomics, and workflow integration. Along with these benefits, major barriers to wider adoption exist, including high implementation costs, fragmented standards, and data security concerns. Furthermore, ethical considerations, ranging from patient privacy to regulatory compliance, demand thoughtful policy frameworks. The continuous evolution of XR, fostered by advances in haptic feedback and AI-driven simulations, is thought to shape the future of biomedical and clinical engineering, providing an innovative healthcare paradigm that fosters enhanced collaboration, safety, and significantly improved clinical workflows.