Integrating sensor technology into education enables the assessment of student engagement, self-regulated learning, and cognitive performance. We examined the application of sensor technology to improve learning outcomes while addressing challenges such as financial constraints, data privacy concerns, and the need for educator training. Structured questionnaire surveys were conducted with students and teachers from various educational institutions. The findings revealed that sensor technology significantly improved student engagement, self-regulated learning, and cognitive performance. However, challenges related to the implementation methods and ethical considerations highlighted the necessity for professional development and enhanced data management policies. With adequate support and resources, sensor technology has the potential to effectively transform educational experiences and outcomes. The results of this study confirm that integrating sensor technology into education not only improves learning outcomes but also establishes it as a powerful, technology-driven educational tool.