Augmented reality (AR) enhances real-world environments by overlaying virtual objects, audio, and other digital enhancements. It aims to enhance perception and performance without users knowing it augments reality. Unlike virtual reality which immerses users in simulated environments, AR allows users to remain present in the real world while virtual objects are superimposed. AR works by combining real and virtual scenes using displays, tracking, sensors, and processors. Current applications include movies, entertainment, and cars, though GPS and image recognition limitations exist. As the technology advances, concerns arise around losing touch with reality.