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The systematic literature review was used as research methodology to address the study\u2019s objectives. The 25 most relevant research papers published in peer-reviewed journals were selected to conduct the study. Findings revealed that augmented reality has significant positive effects on user engagement, marker space innovations, experiential learning, efficient library management, and supportive role for librarians. Results also manifested that financial barriers, technological proficiency, technical support, and ethical considerations caused challenges for the adoption of augmented reality applications in libraries. 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