Today, the cost of doing business has increased by a large margin. This situation has resulted from the rise in energy costs and continued use of the old systems in running businesses. Companies are always on the lookout for ways through which they can save money and at the same time improve the quality of services (Cirulis, & Ginters, 2013). Emerging technologies such as Augmented Reality (AR) have provided innovative low-cost solutions to this problem. Since the kick-off of the digital transformation era several years back (Koul, S 2018), supply chain innovations are raging forward to provide cost-effective solutions to the community, and now the AR (augmented reality) is seen as a new biggest chapter in SCM world that helps to overlay information into the real world. Different players in the supply chain and logistics network including truck drivers, warehouse attendants, and different managers use this information to track goods from the moment they leave one point until they are delivered to the next one (Arnold, 2018). AR is progressively transforming logistics and supply chain from a traditional slow, paper-based sector to a high technology-driven industry. This paper discusses the fundamentals of AR technology in supply chain management and logistics, different areas of application and the challenges facing its application.