This paper presents an examination of augmented reality (AR) as a rising form of interactive narrative that combines computer-generated elements with reality, fictional with non-fictional objects, in the same immersive experience. Based on contemporary theory in narratology, we propose to view this blending of reality worlds as a metalepsis, a transgression of reality and fiction boundaries, and argue that authors could benefit from using existing conventions of narration to emphasize the transgressed boundaries, as is done in other media. Our contribution is three-fold, first we analyze the inherent connection between narrative, immersion, interactivity, fictionality and AR using narrative theory, and second we comparatively survey actual works in AR narratives from the past 15 years based on these elements from the theory. Lastly, we postulate a future for AR narratives through the perspective of the advancing technologies of both interactive narratives and AR.