The integration of virtual reality (VR) and augmented reality (AR) tools in smart manufacturing can significantly reduce environmental impacts. Traditional manufacturing practices often lead to resource consumption, energy usage, and waste generation. VR and AR technologies offer immersive experiences, enhance productivity, streamline training, and optimize design workflows. They reduce the need for physical prototypes and travel, reducing carbon emissions and resource consumption. AR overlays real-time information onto physical environments, empowering workers to make informed decisions, reducing errors and material waste. However, challenges like technological complexity, cost barriers, and workforce training remain. Collaboration among technology providers, policymakers, and industry stakeholders is crucial to maximize the sustainability impact of VR and AR in manufacturing. Governments can support adoption through regulatory frameworks, grants, subsidies, and knowledge-sharing platforms.