An augmented reality workspace system includes a physical display device, a user tracking subsystem, and an augmented reality display subsystem, all coupled to a computing system. The computing system uses the augmented reality display subsystem to display an augmented reality element that appears located in a three-dimensional volume immediately adjacent the physical display device as viewed through the augmented reality display subsystem, and uses the physical display device to display a two-dimensional element in a manner that is coordinated with the augmented reality element displayed using the augmented reality display subsystem. When the computing system receives user tracking information from the user tracking subsystem that indicates a user interaction with the augmented reality element, it provides for a coordinated modification of the display of each of the augmented reality element and the two-dimensional element by the augmented reality display subsystem and the physical display device, respectively.