Augmented Reality (AR) can be described as one of possible steps between real world and fully virtual reality. Into this mixed reality we can make an overlay with virtual objects onto the real world typically by capturing camera images in real-time to produce a new layer to the environment with which we can interact. Mobile Augmented Reality (MAR) is a term used when equipment through which we achieve AR is small in size and typically easy to carry e.g. a smartphone or a tablet. The concept of using AR in facilitating learning and improving its quality seems to attract more attention in the academic world in recent years. One of the areas that receive much attention is AR language learning. In this thesis an experiment on a group of 20 people was conducted to answer the question: “Is MAR language learning system a viable solution for language learning?” For the purpose of the experiment an AR Language Learning Tool was designed for Android smartphones. This AR Language Learning Tool facilitated vocabulary learning by displaying 3D objects along with their spelling and providing audio of pronunciation. Participants were divided into an equal control group and test group. The control group learned new vocabulary through classic flashcards while the test group used the previously designed AR Language Learning Tool. The Vocabulary Knowledge Scale questionnaires were provided for both groups right after learning and one week later. By performing statistical analysis with Student’s t-test on gathered data it was discovered that there is a positive improvement in long term recall rate in the AR Language Learning Tool group when compared with the flashcards learning group. No difference was found in short term recall rate between both groups. Participants also provided feedback about their quality of experience and enthusiasm for new learning methods. Their answers were very positive and provided proof that mobile AR is a viable method of learning vocabulary.