The gap between vocational education and training (VET) provision and the actual requirements of both employers and the job market gives Tanzania great concern in the context of workforce development. In industry 4.0 revolution era, traditional systems of VET training do not prepare the graduates for the requirements of the employers and the labour market at large. Therefore, the use of Virtual and Augmented Reality (VR and AR) is deemed as a panacea to this skills mismatch. This study employed integrated design of systematic review of literature aiming to explore the prospects and hurdles of using VR and AR on narrowing VET skill gaps and matching training outcomes to industry requirements. The review included 35 empirical research works published between 2015 and 2025 in SCOPUS, SPRINGER and ERIC platforms using the PRISMA 2020 method. This study brings together the global and regional evidences on the pedagogical, institutional, and policy-oriented aspects of VET and immersive technologies. The results show that the use of VR and AR in VET helps learners assimilate skills better through simulations of workplace experiences, thus bridging the gap between the industry and VET institutions. However, the adoption of such technologies in Tanzania is hampered by the high costs of the technologies, poor infrastructure, and insufficient preparation of trainers. The study suggests public-private partnerships, innovation ecosystems, and targeted capacity building for the sustainable incorporation of VR and AR technologies in transforming VET systems in Sub-Saharan Africa including Tanzania.