The paper presents the effects of an educational augmented reality application through which a 3D model of the watermill’s operation mechanism is displayed to the visitor’s mobile device. Individual objectives of the current work were to investigate whether an augmented reality application can and to what extent augment the knowledge of a visitor, if it has an impact on the interpretation and communication of the cultural asset, if it contributes to the creation of pleasant visits and if it is accepted and to what extent by the visitors of a watermill. Our research was focused on the “greek type” watermills in the wider area of Tzoumerka and along the Arachthos River in the region of Epirus in Greece. The research was conducted on-site and showed positive effects of using the latest technology in the interpretation and communication of a cultural asset.