There has been a gradual decline in the number of children reading storybooks, as many now favor electronic gadgets for entertainment. This shift is reflected in the performance of school-going children such as their English composition and comprehension. Research indicates that around 80% of Pakistani students struggle with basic reading comprehension skills. As technology advances and changes how we interact with it, there is an opportunity to incorporate reading into children's screen time. This study explores the potential of augmented reality (AR) to make reading more engaging and interactive, encouraging children to read more. It investigates the effects of AR on reading motivation, engagement, and attitudes, while also identifying effective AR design elements that sustain children's interests. The ultimate goal is to develop an AR app that not only enhances the reading experience but also fosters regular reading habits in children, addressing the current issue of declining reading practices. This paper introduces “StoriesAR,” an Augmented Reality application designed to combat the growing concern over children's decreasing interest in reading. This study demonstrates that integrating narrative-based learning with AI-driven scaffolding not only improves learners' engagement and comprehension but also provides a replicable framework for incorporating digital storytelling into language pedagogy and learning technologies.