In the retail landscape, with the introduction of Artificial Intelligence (AI) has drastically brought the changes that enhance customer engagement and their decision making. In the midst of these innovative technologies, AI- powered Virtual Try-On (VTO) has emerged as an important tool in the optical retail industry which enables the customers to visualize spectacles frames virtually before making a buying decision. When compared to traditional spectacle selection methods, VTO offers a more personalized, interactive and convenient shopping experience by integrating artificial intelligence, facial recognition and augmented reality. Despite its increasing implementation, understanding its impact on customer satisfaction and purchase intention remains a key area of research. The present study aims to analyse the impact of AI- powered VTO technology on customer satisfaction and purchase intention in optical retail and also examines the customer perception of the technology. The primary data were collected through a structured questionnaire from 144 respondents who have experienced AI- powered Virtual Try-On for selecting spectacles. Descriptive Statistics, Cronbach’s Alpha, Correlation and Regression Analysis were used to assess the relationship among the variables of the study. The results of the study suggest that AI-powered Virtual Try-On contributes to a better customer experience by enhancing customer satisfaction, which subsequently encourages purchase intention. These findings enrich the existing literature on AI-enabled retail technologies and provide useful guidance for optical retailers in designing more engaging and customer-oriented digital shopping experiences.