This study aims to investigate the influence of perceived augmented reality (AR) on tourist satisfaction and loyalty within the context of cultural heritage tourism. By examining AR as a marketing tool, the research explores how AR can enhance the visitor experience and promote long-term loyalty. A comparative analysis between China and Malaysia is conducted to assess the effectiveness of AR in diverse cultural settings. A quantitative research design was employed, using structured questionnaires distributed to tourists in both China and Malaysia. Data were collected from 200 respondents in each country and analysed using Structural Equation Modelling (SEM) with SPSS and Amos to explore the relationships between perceived AR, tourist satisfaction, and loyalty. Immersion was examined as a mediating variable in these relationships. The study revealed that perceived AR has a significant positive effect on both tourist satisfaction and loyalty. Immersion was identified as a key mediator, enhancing the impact of AR on tourist experiences. The comparative analysis highlighted cultural differences in the effectiveness of AR, emphasising the importance of developing culturally specific AR applications. This study contributes to the understanding of how AR can enhance tourist experiences and foster loyalty, with a particular focus on the mediating role of immersion. It offers valuable insights for tourism marketers and destination managers, recommending the design of culturally tailored AR applications to maximise tourist engagement and retention.