Today technological changes make the probability of more complex things made into simple tasks with more accuracy in major areas and mostly in Manufacturing Industry. Internet of things contributes its major part in automation which helps human to make life easy by monitoring and directed to a related person with in a fraction of second. Continuous advances and improvement in computer vision, mobile computing and tablet screens have led to a revived interest in Augmented Reality the Augmented Reality makes the complex automation into an easier task by making more realistic real time animation in monitoring and automation on Internet of Things (eg like temperature, time, object information, installation manual, real time testing).In order to identify and link the augmented content, like object control of home appliances, industrial appliances. The AR-IoT will have a much cozier atmosphere and enhance the overall Interactivity of the IoT environment. Augmented Reality applications use a myriad of data generated by IoT devices and components, AR helps workers become more competitive and productive with the realistic environment in IoT. Augmented Reality and Internet of Things together plays a critical role in the development of next generation technologies. This paper describes the concept of how Augmented Reality can be integrated with industry(AR-IoT)4.0 and how the sensors are used to monitoring objects/things contiguously round the clock, and make the process of converting real-time physical objects into smart things for the upcoming new era with AR-IoT.