Color appearance for real objects has been studied over decades and it has been well modeled. However, in augmented reality (AR) environments, virtual content is added to a real background and a mixed appearance is perceived. In this research, we studied color appearance in AR and investigated the applicability of the CAM16 color appearance model, one of the most comprehensive current color appearance models, in an AR environment. Using a benchtop optical mixing apparatus as an AR simulator, objective measurements of mixed colors in AR were performed. Then a psychophysical color matching experiment was performed with combinations of mixed foreground and background colors. The results showed that CAM16 is not accurate in predicting the color appearance in AR environment; therefore, it was modified with the addition of chromatic simultaneous contrast, resulting in an improved fit to the AR experiment data. A second psychophysical color matching experiment was performed on a single display to compare the color perception in AR with color perception in real world from a single display.