Augmented reality (AR) and virtual reality (VR) differ primarily in their level of immersion. AR overlays digital information onto the real world, enhancing the user's perception of their environment through devices like smartphones or AR glasses. In contrast, VR creates a completely immersive experience, transporting users into a fully simulated environment through headsets. AR typically focuses on enhancing real-world experiences, while VR is designed for immersive experiences, making them suitable for different applications in areas such as entertainment, education, and training.