Augmented reality (AR) is a technology that superimposes information, usually computer-generated images, on the world we see that results in a composite view. It makes use of a computer generated display, sound, and text that enhance the user’s real-world experience. AR uses both real and computer-generated images to provide the user a real, but also enhanced, view of the world.

Virtual reality (VR), on the other hand, is an immersive computer simulation of reality that users can interact with in a seemingly real and physical manner, usually aided by special electronic equipment (a helmet with a screen inside and gloves fitted with sensors). VR projects a three-dimensional space, an artificial environment, that makes use of the user’s sight and sound to seem real.

Reference: Techopedia