This paper examines the dynamic intersection of interactive learning approaches and technology integration within contemporary education. As technology rapidly evolves, it fundamentally reshapes pedagogical practices by introducing innovative tools and strategies that redefine the teaching and learning landscape. We investigated the pivotal roles of Extended Reality (XR) technologies, including Virtual Reality (VR) and Augmented Reality (AR), in crafting immersive educational experiences. Additionally, interactive learning methodologies, such as game-based learning and the Learning by Asking (LBA) system, are scrutinized for their potential to engage learners and foster their skill acquisition. Furthermore, the emergence of competency-based education (CBE) models is analyzed in response to evolving educational objectives, emphasizing the cultivation of practical skills, problem-solving abilities, and commitment to lifelong learning. Nevertheless, the successful integration of these advancements encounters formidable challenges, including institutional barriers and the imperative need for comprehensive teacher training. This review illuminates the transformative potential of technology in education and underscores educators’ pivotal role in equipping learners for an increasingly dynamic and uncertain future.