Augmented Reality (AR) is reshaping the retail landscape by bridging the gap between physical and digital shopping experiences. This study explores the transformative effects of AR technology on enhancing customer experiences and driving engagement in the retail sector. AR overlays digital content onto the real world, allowing consumers to interact with virtual product models and immersive environments, thereby enriching both in-store and online shopping experiences. The COVID-19 pandemic hastened the adoption of augmented reality (AR) as businesses look for new and creative methods to interact with customers in the face of growing online purchasing trends and physical distance policies. Virtual try-ons, 3D product visualizations, virtual showrooms, AR-guided navigation, and interactive marketing techniques are some of the key uses of augmented reality in retail. AR has the potential to increase customer satisfaction, decrease product returns, and boost customer engagement, as seen by notable implementations by businesses like Wayfair, IKEA, and Sephora. This research attempts to examine how well different forms of augmented reality content, like gamification and virtual try-ons, work to influence consumer behavior and purchase choices. In particular, it looks at how AR will be integrated with conventional retail methods using technologies like QR codes, and how this will impact the future of retail. Findings indicate that augmented reality (AR) increases consumer trust and decision-making, encourages greater conversion rates, and enhances merchants' return on investment (ROI).The conclusion suggest, augmented reality (AR) is a crucial tool for contemporary retail, providing individualized, engaging, and interactive shopping experiences. AR shines as a major force behind innovation and client loyalty as retailers continue to adjust to changing consumer expectations and technology breakthroughs. In order to establish augmented reality (AR) as a cornerstone of the digital retail revolution, more study and strategic application of AR can improve retail operations and customer happiness.