We investigate the role of augmented reality (AR) as a new kind of handheld interface to enhance navigation. We integrate AR with other more common interfaces into a handheld navigation system, and we conduct an exploratory study to see where and how people exploit the AR interface. Based on previous work on augmented photographs, we hypothesize that AR is more useful as a support for wayfinding at static locations just before road intersections. In partial contradiction with our hypotheses, our results show that AR is used mostly while walking, usually shortly before and after road intersections. Our results help drawing considerations informing both the design of AR interfaces and the development of tracking technologies.