Multiple recent studies and surveys are underlining a gap in extended reality (VR/AR) theory and practice training modules within engineering schools and vocational training centres. This gap is causing a continuous shortage of relevant skills within a booming industryand thus, hindering faster and better development of commercial products and services.In this context, the Alliance4XR is set on co-creating and testing a well-tailored teaching and training methodology and material for empowering HEIs and VET to successfully address the challenge of XR digital skills in the engineering sector in a sustainable way. This methodology and material will enhance the capacity and knowledge of HEIs, VET in successfully addressing the technological and access to-market challenges that students and trainees face when entering the engineering sector. The methodology will be co-defined, deployed, tested, quality assessed and improved through local initiatives with the active involvement of HEIs, VETs, business and industry stakeholders. This digital skills gap for extended reality and engineering will be bridged by mapping the syllabi horizontally on a European level, identifying the needs for AR/VR teaching, devising the material and providing training and teaching packages with demos, sample data and customisable software.