The Dunhuang Mogao Grottoes murals are an important cultural heritage (CH) of China. The visual presentation of Dunhuang murals lacks regularity, making it difficult for viewers to understand the Buddhist stories depicted in murals. In this paper, we propose an AR interactive narrative combined with 3D printed assemblies, allowing viewers to comprehend the Buddhist myths of murals through the fusion of virtual and real interactions. By utilizing 3D-printed assemblies, we created tangible models of the virtual “Mount Sumeru” in the mythology, together with mobile AR, which enables viewers to explore different storylines of murals by interacting with the physical or virtual content. We also conducted a preliminary user study to identify the advantages and challenges of integrating AR and tangible interactions in narrative design. Finally, we summarized design implications for AR interactive narrative of cultural heritage from three perspectives: heritage connotation, virtual-physical interaction, and narrative spatiotemporal context, to improve the narrative comprehension and creative digitization of cultural heritage.