Parent-child reading critically affects children's learning and development, and dialog reading (DR) is a highly effective strategy for parent-child reading. This study employed the prompt, expand, evaluate, and repeat (PEER) DR strategy to develop a picture book incorporating augmented reality (AR) technology. AR information is extracted from the book using a mobile device to guide children through PEER-based reading. To determine the effectiveness of the AR picture book, a total of 56 preschool children participated in an experiment. The children were divided into an experimental group and a control group. The participants in the control group were accompanied by their parents, and they engaged in conventional parent-child reading; however, the participants in the experimental group engaged alone in AR-assisted reading. The results indicated that the experimental group achieved learning effectiveness significantly higher than that of the control group. A cycle of behavioral changes," scanning with a mobile device [right arrow] reading augmented information [right arrow] answering the questions on the mobile device [right arrow] scanning with a mobile device", was observed. This cycle indicates that child-mobile device-picture book interaction increased the children's learning effectiveness.