This study presents a systematic review of the literature on augmented reality (AR) used in educational settings. We consider factors such as publication year, learner type (e.g., K-12, higher education, and adult), technologies in AR, and the advantages and challenges of using AR in educational settings. The full range of SSCI journals was surveyed and a total of 68 research articles were selected for analysis. The findings reveal an increase in the number of AR studies during the last four years. The most reported advantage of AR is that it promotes enhanced learning achievement. Some noted challenges imposed by AR are usability issues and frequent technical problems. We found several other challenges and numerous advantages of AR usage, which are discussed in detail. In addition, current gaps in AR research and needs in the field are identified, and suggestions are offered for future research. •We conducted a systematic review of literature on AR used in educational settings.•Numerous studies have indicated that AR promotes enhanced learning performance.•The most reported challenge is that AR is difficult for students to use.•Most of the problems were experienced in location-based AR applications.