This article proposes a novel framework, MetaHate, that employs AI and BC to detect and combat hate speech in online gaming environments within the metaverse. Various machine learning (ML) models are applied to analyze Hindi–English code mixed datasets, with gradient boosting proving the most effective, achieving 86.01% accuracy. AI algorithms are instrumental in identifying harmful language patterns, while BC technology ensures transparency and user accountability. Moreover, a BC-based smart contract is proposed to support the moderation of hate speech in the game chat. Integrating AI and BC can significantly enhance the safety and inclusivity of the metaverse, underscoring the importance of these technologies in the ongoing battle against hate speech and in bolstering user engagement.