Embodiments of the present invention disclose an augmented reality writing system and method thereof. According to one example embodiment, the system includes a handheld writing tool having an end portion and a display device for displaying digital content for viewing by an operating user. An optical sensor is coupled to the display device and includes a field of view facing away from the operating user. Furthermore, coupled to the optical sensor is a processing unit configured to detect and track the position of the end portion of the handwriting tool. In accordance therewith, handwritten content is digitally rendered on the display device to correspond with the handwriting motion of the writing tool within the field of view of the optical sensor.