Augmented Reality (AR) has been explored in education for over 25 years, demonstrating significant potential in enhancing student engagement, improving learning outcomes, and addressing limitations of traditional teaching methods. While AR, along with Mixed Reality (MR) and Virtual Reality (VR), has been increasingly adopted in primary and secondary education, its implementation in higher education–particularly in STEM and engineering disciplines – remains limited. This study investigates the current state of XR integration in higher education, identifying barriers that hinder adoption and exploring strategies for effective implementation. Combining literature research, expert interviews with international professors in engineering education, and a survey of Austrian higher education teachers, this study highlights key institutional challenges, including technical, pedagogical, financial, and organizational barriers. The findings emphasize the need for structured institutional support, such as AR content co-creation with students, the development of implementation guidelines, dedicated funding, and comprehensive institutional strategies. This research provides actionable recommendations for universities seeking to integrate these technologies into their teaching practices.