Augmented Reality and Virtual Reality are both related but different. This is because these two terminologies often come in the same discussion and are often confused with one another by less informed.
Nonetheless, the difference is major and worth explaining.

Virtual Reality is immersive:

The headsets must, by necessity, block out the external world. Putting one on is tricky enough to ensure that glancing away, as one might do when watching television, is not really possible. The first wave of applications, therefore, are in video games and films, where users (the companies hope) will prove willing to lock themselves into their virtual worlds.

Augmented Reality, by design, maintains its users' connection with the real world:

This means that a headset is not necessary. Many existing smartphone apps also make use of AR. Word Lens, for instance, translates between languages by looking at the world through a smartphone camera, recognising text, and then presenting the user with a real-time image in which that text has been replaced by its equivalent in another language.