Augmented Reality (AR) is one of the emerging advanced technologies which bridges the gap between the real and the virtual worlds, that gives students prodigious possibilities to learn the information in a completely unique way. With the rising use of personal smart devices in this modern era, the vast potentials of AR have begun to be explored as the smart devices are capable of producing AR environments. In this paper, we have the purpose of exploring applications and challenges of adopting AR in education. Since augmented reality in education can serve a number of purposes. It helps students easily acquire, process, and remember information. Additionally, AR makes learning itself more engaging and fun. Therefore, this paper is based on the research that has been conducted on AR. It is also not limited to single age group or level of education and can be used equally well in all levels of schooling: from preschool education up to college, or even at work. The potential of mixing smartphones and augmented reality for education is big, though it still has got to be fully discovered. AR, in various ways, could grant students extra digital information about any subject, and make complex information easier to know. Nowadays we may find some excellent samples of augmented reality in education worldwide. Ability to attach reality and digital content has been steadily improving, opening more options for adopting AR in education sector.