Abstract: The study investigates the role of Augmented Reality (AR) for business operations enhancement, overcoming technological challenges, and advancing industrial sustainability. A systematic literature review was conducted, analyzing AR applications across sectors such as healthcare, education, e-commerce, manufacturing, maintenance, libraries, and museums. Academic databases like Google Scholar, IEEE Xplore, and Scopus were used. AR's effectiveness was assessed based on its ability to improve workflows, reduce errors, and enhance user engagement. Findings indicate that AR facilitates immersive training, reduces product return rates through virtual previews, and personalizes user interactions, leading to increased operational agility and innovation. Also, AR supports sustainability by promoting eco-friendly behaviors, optimizing resource usage, and enabling lean production practices. However, widespread adoption remains limited due to high implementation costs, technical complexity, and a shortage of skilled professionals. We offer a set of targeted recommendations to mitigate growth barriers: investing in scalable, cost-effective AR solutions, improving technical infrastructure, developing industry-specific AR applications, and offering specialized training to build AR expertise within the workforce. These strategies are essential for full AR's potential realization to drive sustainable and transformative business practices across industries. By addressing these current limitations, organizations can leverage AR not only as a tool for operational improvement but also as a strategic asset for advancing sustainability and long-term innovation.