As shown in Paul Milgram et al’s Reality-Virtuality Continuum (1994), Augmented Reality occupies a very unique status in the spectrum of Mixed Reality. Unlike Virtual Reality, which is completely made up of the virtual and has been the most important theme for both research and practical applications, theoretical approach for Augmented Reality seems to be not keeping up with the technical development. In this paper, two qualities of Augmented Reality, which are virtuality of Augmented Reality and reality of Augmented Reality, are restated with reference to film and animation studies. In spite of the common and essential factor, computer generated images or virtual images, studies in computer vision appear to be set apart from other fields of studies. The object of this paper is to make an experimental conjunction for Augmented Reality and the concepts of Perceptual Reality, Second-order Reality, and possible world theory. It is expected to be useful particularly for studying artistic potentials and applications of Augmented Reality.