Augmented reality (AR) is the technology by which real world experience is augmented or modified by computer generated sensations. It is a rapidly evolving, revolutionary technology which has the potential to extensively transform many aspects of medical field. The use of AR in medical field is not new but its applications were minimal due to its technical limitations. Recent development of holographic stereoscopic high–resolution displays, better image registration techniques and faster processing units have circumvented many of the limitations. Hardware and software improvements made AR applications possible in smart phones. The most critical application of AR is in surgery and related procedures. The crucial concept is fusion of real time image of a patient to the radiological data, which will considerably reduce the risk, length and expertise needed while increasing the patient safety. Understanding the current techniques and scope of AR will help in early adaption of this technique.