Background: During the recent years, the applications of Augmented Reality (AR) have increased due to advances in technology and improved accessibility of smart devices. The novel technological use of Augmented Reality is being introduced in the retail sector to create value both for retailers and customers. Through Augmented Reality, potential customers can virtually try and interact with different products on online platforms, saving both time and efforts needed to make their purchase decisions. Purpose: The purpose of this study was to examine the impacts of Augmented Reality on Product Purchase Intentions among millennials in the Swedish eyewear industry; and whether there was a relationship between the use of the technology and the purchasing decisions of customers. Due to the novelty of AR technology and its applications in the eyewear retail industry, there is a lack of theoretical development on the impacts of this technology on purchasing intention of eyewear products. Method: The study was based on the theory of Technology Acceptance Model (TAM), and the Unified Theory of Acceptance and Use of Technology 2 (UTAUT2). A quantitative research and an explanatory research approach were conducted and followed by surveying (103) participants belonging to Generation Y in Sweden. The AR mobile application of the largest Scandinavian eyewear retailer, ‘Synsam’ that sells various brands was utilised to carry out the research. Multiple Linear Regression was used to test for the relationship between use of AR technology determinants and the purchase intentions of eyewear products of customers. Conclusion: The findings of this study showed that AR technology had an impact on Product Purchase Intentions. The technology characteristics that were of high importance included information about products (Product Information), virtual interaction with the product (Telepresence) and the enjoyment of using this technology (Hedonic Motivation). Furthermore, Millennials in Sweden have found that using the AR technology to be a useful method for purchasing eyewear products, and that such a technology assisted them in making their purchasing decisions. These findings are useful for managers to satisfy their customers and provide them with unique experiences through AR technology embedded in marketing channels, which serves as a powerful tool for retaining customers and building a unique competitive advantage.