Improving the public’s awareness of and engagement with sustainable practices is essential for transitioning from a linear to a circular economy (CE). This task is not trivial; however, research into new ways of effectively supporting awareness and engagement, especially in view of digitalization trends, is still missing. In this study, we investigate the ability of augmented reality (AR) technology to improve awareness of CE practices and to engage citizens, inclusively, in the CE approach. Specifically, we report on the development of a novel AR engagement tool and present the results of two studies undertaken using this tool to assess the reliability and validity of this engagement practice. The first study focuses on the citizens of a municipality in Greece, and the second focuses on the general public outside the municipality boundaries. Attributes related to user engagement, such as novelty, aesthetics, perceived usability, endurability, focused attention, self-efficacy, perceived learning, and interest in the topic, were assessed, as were factors affecting these attributes related to the participants’ knowledge of CE principles and exposure to similar technologies. The two studies indicate that the AR engagement tool increased social inclusion and community cohesion and was able to successfully bring CE principles and benefits to the public’s attention. Higher engagement levels were observed in participants who had limited exposure to the concept of CE prior to using the AR tool, and its use was found to improve their confidence and interest in CE. This study aspires to contribute to the ongoing discourse on the use of mobile AR and to support further evidence-based development of digital tools for public awareness and engagement.
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