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The integration of Augmented Reality (AR) into Human–Robot Interaction (HRI) represents a significant advancement in collaborative technologies. This paper provides a comprehensive review of AR applications within HRI with a focus on manufacturing, emphasizing their role in enhancing collaboration, trust, and safety. By aggregating findings from numerous studies, this research highlights key challenges, including the need for improved Situational Awareness, enhanced safety, and more effective communication between humans and robots. A framework developed from the literature is presented, detailing the critical elements of AR necessary for advancing HRI. The framework outlines effective methods for continuously evaluating AR systems for HRI. The framework is supported with the help of two case studies and another ongoing research endeavor presented in this paper. This structured approach focuses on enhancing collaboration and safety, with a strong emphasis on integrating best practices from Human–Computer Interaction (HCI) centered around user experience and design.