A system and a method for remotely controlling extended reality by a virtual mouse are provided. The system includes a head mounted display and a first remote controller for being worn on a hand. The head mounted display includes an image capture device. The first remote controller communicatively connects to the head mounted display, wherein the head mounted display is configured to: capture an image through the image capture device; detect the image to obtain first data of the hand in the image and second data of a plane in the image; and enable the virtual mouse according to the first data and the second data.