This paper presents the result of the study for collaborative Augmented Reality (AR) based system. AR technology has been investigated for use as a medium for enhancing collaboration by adding virtual information to the real world and supporting the interaction in real time. However, this technology is still in its infant state especially in the education field. More studies are needed so as to provide the value information to this field. The main focus of this study is to investigate the potential of AR spaces such as markers in providing communication cues and supporting collaboration in learning environment. The techniques used in the study are through questionnaire, observation and think aloud protocol. Results from the study shows that AR supports the natural means of communication and interaction. This preliminary study strengthens the conjecture that AR has the potential to be used as a shared medium in collaborative learning. © 2011 Springer-Verlag.