The purpose of this study is to investigate the effect of MagAR, an instructional material for teaching magnetism using augmented reality and sensing technology, on students' academic achievement and learning process, and to identify students' views about augmented reality. An embedded mixed-method approach was employed in this study. The study's results suggest that AR learning environments are effective in teaching physics, and facilitate learning by adding visual and textual components to the learning process. In learning activities integrated with AR, the students were observed to participate more, appeared more comfortable, were able to answer questions related to the subject more easily, had increased self-confidence and exhibited higher academic achievement levels in physics. The results suggest that AR should not be considered as an independent learning environment for the teaching of physics, but would be more effective as supplementary to the laboratory environment.