Augmented reality (AR) is an immersive technology that has revolutionized the world of technology in the modern era. It is highly interactive and connects both the real and virtual worlds. The purpose of AR is to project a virtual object that exists in an external world to the real world and is done by superimposing the image. The collaboration of various physical devices aids the projection. The viewers are provided with additional information due to the superimposition of the images. It provides enhanced perceptions and interactions. These advantages led AR to be widely used for personal and professional needs. There are four possible tasks through which the outcome is obtained. They are scene capture, identification, scene processing and scene visualization, and when all these four steps are put together, it produces a flawless AR output. AR technology is the current trend. It is used in invariably used in all fields. It is more popularly used in medical, healthcare, educational, retail, designing, tourism, construction, gaming, entertainment and E-commerce sectors. This chapter discusses in detail the evolution and various applications of AR, as well as the advantages, limitations and future developments.