In the contemporary world where almost, everything has moved towards digitalisation, the combination of virtual and physical worlds has proved to be an efficient approach in an educational context. Since the application of augmented reality (AR) and virtual reality (VR) in education is on the rise, we recommend a conceptual framework for technology education. However, little is known about how students mix virtual and physical objects in solving everyday problems through prototyping and envisioning the potential solution. This study is based on the gathering and analysis of qualitative and quantitative data on students in higher education. In the first study, we collected (N = 100) information about potential problem-solving contexts for augmented and virtual reality applications. In addition, this study examines student (N = 62) projects in the AR and VR fields to generate new knowledge about co-creation activities in design processes. The results reveal that when students design and develop virtual objects in connection to the physical world, they learn more than just using digital technology alone. Combining the virtual with the physical world provides an extensive learning environment not only for digital problem solving but also for materialistic and physical surroundings. This paper contributes a new theoretical understanding for academicians about the role of AR in technology education and a conceptual framework for practitioners to enhance student learning through AR-based design projects.
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