This paper describes the development of augmented reality system using the sensor and Bluetooth technologies incorporated together with a 3D program. The system is used to produce a virtual reality that can be augmented through the projector device into real world. The concept is to create 3D environment where the virtual camera, which is placed within the 3D environment, would be controlled by the external controller in real time. The movement of the camera is controlled by the motion of the controller; therefore the projection of the 3D environment corresponds to the position of the controller. The paper also discusses research part of the project and the findings related to the users’ evaluations of the system.