Purpose: The secretion of oxytocin, which is linked to social interaction, plays a significant role in enhancing human well-being. The utilization of augmented reality (AR) systems can facilitate sustained social interaction irrespective of physical distance. While exercise and sports activities are known to promote oxytocin secretion, the potential benefits of exercise combined with AR remain to be fully explored. Methods: In a randomized crossover trial, fourteen participants underwent three different regimens: non-exercise (rest), standard cycling exercise (Ex), and cycling exercise combined with AR (Ex+AR). In both exercise conditions (Ex and Ex+AR), participants engaged in self-paced cycling exercises to maintain a Rating of Perceived Exertion of 10. In the Ex+AR condition, participants' avatars were projected onto the tablet screen as they cycled alongside ten other avatars in AR. Saliva samples and mood states (assessed using POMS2) were collected before and immediately after each 10-minute regimen. Subsequently, the levels of salivary oxytocin were measured. Results: The participants demonstrated a faster speed during Ex+AR compared to Ex, despite there was no difference in self-administered fatigue levels between the two groups. Notably, Ex+AR led to a significant elevation in salivary oxytocin levels, whereas Ex showed a trend toward an increase. Furthermore, only Ex+AR significantly ameliorated mood states related to depression-dejection and exhibited a trend toward suppressing anger-hostility. Conclusion: These results indicate that Ex+AR facilitates oxytocin secretion and enhances mood states. Employing the Ex+AR system could be a promising means to foster social interaction, transcending physical distances.