Summary Augmented reality is a relatively new computer technology used to enhance visual effect. It is quickly gaining acceptance in the entertainment industry and commerce. It has been used for marketing toys by Bandai, a toy manufacturer. Some industries use the technology in engineering projects. Moreover, the technology can be used for maintenance of simple household appliances. However, the major application of this technology is in commerce and entertainment. This paper explores various applications of augmented reality and its effect. Introduction Augmented reality is a computer technology where virtual information is integrated into a real world perception. This technology may be used to enhance the real world perception for commercial purposes. A person using augmented reality technology perceives images that consist of virtual vision and reality merged together to create a detailed representation of the targeted object. Three-Dimensional View and Marketing One software manufacturer, Aurasma, has partnered with Bandai, a toy manufacturer, to employ augmented reality technology in marketing of toys. Children will have the opportunity to use mobile phones to get a three dimensional view of the toys while they are still in their packaging material (Brandon, 2012). Although this is a costly venture, it will enable the toy manufacturer to sell more toys due to the attractive and innovative packaging. When customers view the toys before they are unpacked, they are emotionally induced to purchase them. Aurasma’s technology does not only apply to toys alone, but the application can put a real world scene anywhere in its context and display a closely related object, text, movie, or landscape (Nelson, 2012). Another notable application is Blippar. This technology uses a camera to identify the field of vision, and then it generates related information (Greenleigh, 2012). Blippar is suited for marketing since it is able to provide additional information about the products in the field of view. It is obviously a valuable tool for advertisement. The first trial for Blippar involved Ketchup tomato sauce. When the sauce bottle was in the field of view, Blippar application generated an image of the bottle from the internet with additional information such as recipes and shopping guides (Greenleigh, 2012). Trylive eyewear also markets its products through augmented reality. A camera on a mobile phone captures the facial image of a potential customer. It is then possible for the customer to try on eyewear on the internet. This is useful for internet marketing where potential customers are not able to physically fit the eye wear (Theme 640, 2009). Since fitting of eyewear can be done on the internet using augmented reality, it is not necessary for the retailer to bring the retail outlet near the customer. This technology increase sales by evoking confidence (Theme 640, 2009). Application of Augmented Reality for Maintenance Augmented reality is also becoming useful at workplaces. This technology is gradually replacing instructors in training programs and making it easy for firms to manage their human resource. Communication becomes easier since the manager does not have to be physically present to issue instructions. KARMA is an augmented reality technology for engineering applications. It uses a set of v