Children are easily attracted by mobile games and when this becomes educational games, it becomes an avenue for kids to learn while catching fun. It is a known fact that children tend to learn better in a fun seeking environment and Augmented Reality present the platform to realize this objective. Augmented reality is the placing of the virtual environment over the physical environment because it has a good potential of creating interest in children, and thus has been adopted in this research work. This project evaluates the perception of the audience towards augmented reality learning, through the development of an alphabet teaching application, ABC Tutor. This work stems from the need to incorporate into alphabet learning applications, three-dimensional (3D) animation and sound effects to stimulate fun and interest to learn. The solution uses augmented reality, 3D animations and sound effects to stimulate fun. C# programming language with Monodevelop has been used and Unity 3D software has been the development environment. The research has been carried out on 20 nursery school students from ages 3 to 5 from different schools to evaluate the perception of these kids towards augmented reality learning and to determine how augmented reality affects children's learning performance. The learning app has been introduced to nursery school children between the ages 3-5, they were then left to interact with the mobile application for some minutes, after which results were recorded. A learning mobile application that teaches the English alphabet to children while incorporating fun-learning and arousing interest in children has been developed.