Augmented Reality (AR) is a fast-emerging technology and it has been applied in many fields e.g. education, health, entertainment, gaming and tracking systems in logistics. AR technology combines the virtual world with the reality by superimposing digital information onto the physical world. This study evaluates the usability of the AR in industrial environment focusing on effectiveness, efficiency, and user acceptance in comparison to other instructional medium e.g. paper-based instructions or manuals. An AR prototype was developed to be used in the usability evaluation. To evaluate the AR application in the field of industry an experiment was conducted. To get the user experience and acceptance questionnaires and interviews were used involving real assembly workers where they used the AR prototype. The results of the study show that when using AR as assistance in the assembly assurance process, the number of faults and task completion time were reduced significantly compared to the traditional methods. Also, the users had a positive attitude and a high level of satisfaction when using AR.