The primary goal of this research was to examine the impact of Augmented Reality (AR) based virtual interaction and physical interaction on the development of spatial skills in Xining Qinghai, China's primary school students (aged 8 to 10). The research was conducted in a public-school setting with 54 participants using a quasi-experimental research method. While the control group engaged in equivalent activities by physical means, the experimental group employed smart phones equipped with augmented reality software. To measure spatial ability, pre- and post-tests were given to the participants. The findings demonstrated a statistically significant improvement in spatial ability test in overall scores for the experimental group.