The objectives of the present study are to search and critically analyse the immersive learning environments; and deriving the applications and effects of immersive learning environment in education with suitable examples by supporting empirical evidences. Based on the objectives and limitations of the present study, important research questions for critical analysis are formulated. The “Substitution Augmentation Modification Redefinition Model” (SAMR) of Dr Ruben Puentedura was used as the theoretical framework. The study is review-based and analytical in nature, where related literatures regarding the uses, effects and challenges of immersive learning environments in education in present and futuristic perspectives. Both inclusion and exclusion criteria were followed. From the intensive literature review regarding the immersive learning environments widely used in educational setting, the four important aspects were found, viz. immersive learning, virtual reality, augmented reality and mixed reality. The results revealed that ILEs have wide educational effects like providing learning autonomy, increasing attention, providing permanent learning, self-regulated learning, active participation, increasing comprehension of lesson, providing in-depth learning etc. in terms of cognitive effects. ILEs have some affective effects of students like satisfaction, fun, curiosity, enjoyable, interesting, exciting, motivating etc. After the critical analysis of the immersive learning environment systems used in education, game-based learning, project-based learning, experiential learning, collaborative learning etc. were found to be most frequently used. So far as its implementation part is concerned, some sorts of challenges have been noticed in research studies i.e., difficulty in understanding, technical problems, insufficient instruction, limited time, and health problems. Suggestions for further research were provided.