This paper aims to discuss the reasons as to why public spaces in urban areas become dysfunctional, and focuses on a specific public space in the historic city of Kandy, Sri Lanka. The main objective of the paper is to provide a solution for dysfunctional public spaces by rejuvenating them with the use of Augmented Reality Systems (ARS). The study explores how digital interventions in urban public spaces can be used without impairment to the historic relevance, social integrity or urban fabric of a location.