In this article, the development of an augmented reality–based robotic work cell is presented, consisting of a virtual robot arm, conveyor belt, pallet and computer numerical control machine that simulates an actual manufacturing plant environment. The kinematics of the robot arm is realized using Denavit–Hartenberg’s theorem, which enables complete manipulation of the end-effector in three-dimensional space when interacting with other virtual machines. Collision detection is implemented in two areas, namely, modifiable marker–based detection for the robot arm, which detects nearby obstacles as well as integration with object manipulation to pick and place a virtual object around the environment. In addition, an augmented heads-up display overlay displays live information of the current system. The case studies suggest that the proposed system can simulate a collision-free operation while displaying the coordinates of the virtual object, current tool equipped and speed of the conveyor belt, with a percentage error of less than 5%.