The design of augmented reality and virtual reality (AR/VR) wearable systems is extremely challenging while simultaneously meeting the power, performance, and sleeker industrial design (ID) requirements. The design of the power distribution network (PDN) is particularly critical and requires a comprehensive approach that considers the hierarchy of the power delivery system, from the power management integrated circuit (VRM) to the System-on-Chip (SoC) including the package and board. This paper describes the PDN optimization approach and design challenges faced during the design of AR/VR systems that meet socially acceptable compact formfactor while maintaining overall performance and power efficiency.