A method for performing interaction based on augmented reality is provided. The method includes obtaining an image of a real scene photographed by a first terminal; obtaining a first location of the first terminal and a second location of a second terminal, the first location including geographical coordinate and orientation of the first terminal; matching the first location with the second location; displaying, on the image of the real scene photographed by the first terminal, information of successfully matched second terminal; and interacting according to the displayed information of the second terminal. By the method, an image is formed by photographing a real scene, and information of the successfully matched second terminal is displayed on the image of the real scene photographed by the first terminal; then interactions are performed according to needs. Furthermore, a system for performing interaction based on augmented reality is provided.