Cyber-physical smart city integration of digital components into the real world will offer a variety of possibilities to enrich our daily life. A digital-physical hybrid world makes it possible to optimize our energy use and to offer more comfortable traffic management. However, we still need to investigate how to interact with a hybrid world. Augmented reality and virtual reality techniques offer promising ways for interacting with a digital-physical hybrid world, but our current understanding of how to use them in the real world is insufficient. In this paper, we present an overview of two case studies. One is a virtual reality system; the other is an augmented reality system. From our experiences with the case studies, we found that maintaining the reality is an important factor in designing a successful interaction within a digital-physical hybrid world. We also present a possible future scenario allowing seamless integration of a real world and a fictional world for designing a digital-physical hybrid world. We discuss how reality also plays an important role in analyzing the scenario to create a successful design. The result shows that analyzing people's sense of reality is an important design tool for designing a future daily environment that seamlessly integrates fictional and real worlds.

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