With the integration of computer-generated images and data into the real world, augmented reality (AR) is a game-changing technology that improves users' perceptions and interactions with their surroundings. This technology, which can overlay digital data on real-world environments, has great potential for use in several fields, such as mechanical system design and prototyping. The use of AR in this industry is not just a theoretical idea; rather, it is a rapidly developing reality with enormous potential for creativity, effectiveness, and accuracy. Augmented Reality (AR) is a technology that combines the physical and digital worlds to provide a composite vision that improves the user's sense of reality. Augmented Reality (AR) superimposes digital data in real-time over the actual world, in contrast to Virtual Reality (VR), which submerges users in a fully digital environment. Usually, gadgets like tablets, smartphones, AR glasses, and head-mounted displays (HMDs) help with this integration. The term "mechanical system design" describes the entire process of imagining, creating, and perfecting mechanical parts and systems; it includes everything from rough concept drawings to intricate engineering models and simulations. Before moving on with full-scale manufacturing, prototyping entails building early models or samples of a product to test and verify design concepts.