The document defines augmented reality (AR) and discusses how it works. AR was proposed in 1990 and involves an interactive, real-time combination of virtual and real-world elements seen through 3D computer displays. Most current AR research focuses on digitally augmenting live, indirect video views of the physical world. The goal of AR is to integrate virtual objects with the real world such that the user cannot distinguish between real and virtual elements. The document also discusses applications of AR in gaming, media, and social networking as well as advantages like enhanced usability and disadvantages like privacy and social acceptance issues.