Disclosed is a video playing method based on augmented reality technology. In combination with augmented reality technology, a rectangular plane 3D model which completely covers a target picture in a current scene image is drawn, and at the same time, after a video file related to the target picture is separated into an audio stream and a video stream, a video image frame in the video stream is taken as a texture and is mapped to the 3D model frame by frame, and graphic rendering is performed; and finally, a scene image captured by a video camera and the rendered 3D model are fused and output, and the audio stream data is output synchronously. Correspondingly, also disclosed are a video playing system based on augmented reality technology and mobile terminal. The picture information in newspapers and periodicals, magazines and other print media can be easily converted into video information, and the video completely fits the picture in the spatial position, so that a user obtains a new audio-visual experience of combining emotion with scenery; and newspapers and periodicals, magazines and other paper media can also realize diversified propagation of information by virtue of the technology of the present invention, and provide a precise fast video push service.