In this study, a conceptual system framework was developed by integrating augmented reality (AR) technology to reduce the limitations in observation and assessment during performance assessment. Thus, the efficiency and reliability of mobile performance assessment can be enhanced. The processes of student performance can be presented from diverse approaches by using the characteristics of mobile devices and AR and considering the categories and situations of student performance. In this study, a novel mobile performance assessment system that incorporates AR to the processes of observation and assessment in performance assessment was developed. The mechanism emphasises the approaches adopted to present student works and provides opportunities for enhancing student communication and interaction. In addition, the system enables students to explain their works and incorporate the feedback they receive into future work. More importantly, mobile AR can be applied to offer personalised features and appropriate information in particular areas. Hence, students can interact with real or virtual information based on their needs. During this process, students can observe their own works from varying perspectives, acquire vital knowledge, develop the skills of critical thinking, and transform the process into a substantial self-established learning process.