As human exploration of space continues to progress, the use of Mixed Reality (MR) for simulating microgravity environments and facilitating training in hand-object interaction holds immense practical significance. However, hand-object interaction in microgravity presents distinct challenges compared to terrestrial environments due to the absence of gravity. This results in heightened agility and inherent unpredictability of movements that traditional methods struggle to simulate accurately. To this end, we propose a novel MR-based hand-object interaction system in simulated microgravity environments, leveraging physics-based simulations to enhance the interaction between the user’s real hand and virtual objects. Specifically, we introduce a physics-based hand-object interaction model that combines impulse-based simulation with penetration contact dynamics. This accurately captures the intricacies of hand-object interaction in microgravity. By considering forces and impulses during contact, our model ensures realistic collision responses and enables effective object manipulation in the absence of gravity. The proposed system presents a cost-effective solution for users to simulate object manipulation in microgravity. It also holds promise for training space travelers, equipping them with greater immersion to better adapt to space missions. The system reliability and fidelity test verifies the superior effectiveness of our system compared to the state-of-the-art CLAP system.