Augmented reality enhances experiences by adding virtual components like images and graphics to interact with the real world, unlike virtual reality which creates a completely computer-generated reality. Augmented reality uses devices like smartphones, tablets, and head-mounted displays to superimpose graphics, audio, and other sensory enhancements onto the real world in real time. Examples of augmented reality include the SixthSense device and the popular Pokemon Go game. Potential applications are in education, advertising, translation, and gaming, though accuracy, hardware, and privacy issues pose limitations.