This study looked at the use of augmented reality to combine real scenery with virtual sound to improve the interactivity of teaching aid and provide handicapped children with a more intuitive learning method. The focus is on the development of augmented reality applications for special education. The key components are identifying tags for augmented reality, web-cam device and image processing device. The study was divided into preparation phase and experiment phase. The preparation phase was used to train teacher involved in this study while the experiment phase generated feedback from the actual use of this system by handicapped children who were the subjects of the study. The system was used for children from 4th grade to 8th grade. The design of the teaching materials offered both the teachers and the handicapped children a novel learning method.