The innovative technology - which would represent a huge step in the fashion industry - consists of a display device featuring a screen behind the mirror, while objects will be illuminated by projectors in front.
According to The Verge, the mirror - the patent for which was first filed in 2015 - would work using an embedded camera to scan the environment and generate a virtual model.
From there, it would identify the eyes and face of the customer and gauge which objects can be shown in the reflection, before the virtual clothes and scene itself are transmitted to create a blended-reality image.
Although solid plans to launch the technology haven't been made yet, it would fit in well with other projects from Amazon, including 3D scanning platform Body Labs, which uses AI, computer vision and body modelling to create an accurate image of a customer's dimensions.
Meanwhile, it could also give a boost to Echo Look, Amazon's hands-free video camera used to take floor-length photos and provide fashion advice and recommendations, according to reports.
There is also the possibility it could help improve the company's online 'try before you buy' Prime Wardrobe programme.
The subscription service originally let Prime members order - and try on between three and 15 items of clothing before deciding whether they wanted to make a purchase.
However, since the launch the threshold was lowered to just 10 items in November, but the VR mirror could be a way to alter the service in a way to benefit customers and Amazon itself.