This paper presents the development of an interactive mobile augmented reality magical playbook for preschool children in learning numbers using an old folklore literature, The Thirsty Crow, via mobile augmented reality application and interactive physical book interface design. Augmented Reality (AR) refers to a technology that gives the ability to the user the sense of the real world while interacting with the virtual and physical object. Mobile refers to portability usefulness of the application itself, thus mobile AR application can be referred as a portable AR application. The real world can be enhanced by AR through augmented virtual object into real environment and providing some additional information for users. By applying this concept to AR storybook, the physical book (the real world) will be enhanced by augmenting the virtual object (3D models, animations, and sounds) viewed over a mobile device. This paper specifically highlights an innovative development of the interfaces for providing an AR storybook that enhanced story reading and learning experience for preschool children via mobile AR application and highly interactive physical book interface design of the AR book. Findings from the initial observational study based on developed prototype are also presented. For future work, there will be a series of interactive mobile AR magical playbook using other old folklore story. © 2013 The Authors. Published by Elsevier B.V.