Augmented reality (AR) enhances the real world with computer-generated sensory input, while virtual reality (VR) creates a completely simulated environment. Popular AR applications include Pokémon Go and Google Lens, whereas VR applications include Google Cardboard and Google Earth. Key differences lie in user experience, interaction methods, and technology requirements, with AR requiring no headset and allowing users to remain in the real world, while VR requires headsets and immerses users in a different world.