Augmented reality (AR) and virtual reality (VR) differ primarily in how they interact with the user's perception of reality. AR overlays digital information onto the real world, enhancing the user's environment with data, images, or sounds through devices like smartphones or smart glasses. In contrast, VR immerses users in a completely virtual environment, typically experienced through headsets that block out the physical world. While AR augments the real world, VR creates an entirely separate reality. Both technologies have unique applications, such as gaming, education, training, and simulations, but cater to different experiential needs.