Augmented Reality (AR) opened new avenues in cultural heritage tourism, particularly in enhancing the visibility of underexplored areas. The aim of this paper is to discuss the potential of this technology for the promotion of cultural heritage for the touristic development of rural areas, aiming to drive sustainable tourism development. By providing an immersive and interactive experience, AR technology can bridge the gap between the past and present, making heritage more engaging to a broader audience, adding elements of gamification and edutainment. The paper presents a case study of an AR application designed specifically for the Cyprus Deputy Ministry of Tourism, showcasing how digital overlays can enhance visitors’ understanding and appreciation of cultural heritage through digital storytelling. The paper presents the conceptual and creative processes involved, including the integration of historical data, the conceptual gamification elements, and the incorporation of historical elements for the promotion of local traditions, products, and other characteristics. It seeks to demonstrate how AR can be combined with gamification and digital storytelling to further support sustainable tourism development in rural areas through more interactive and engaging applications, offering valuable insights for future initiatives in this field.