Although they have a very similar name, their characteristics and objectives are quite different.
While Virtual Reality creates a totally new environment detached from the real world, Augmented Reality includes digital components in the physical world around us.
Both require a technological intermediary to access them, however, they offer totally different experiences for users.
Virtual Reality replaces the "real" with 100% virtual content. This type of technology allows, for example, to enter games, scenarios and environments, where the user performs actions, moves and interacts with the fully digital content, through a complete immersion.
On the other hand, Augmented Reality projects information (such as images, graphics, characters, texts) in the real world, providing a new vision of the physical space.
A practical example is the game Pokémon Go, which shows the characters to be captured in the environment where the user is playing, as if they were part of the place.