In this paper we present a concept for augmented reality entertainment, called AR Karaoke, where users perform their favorite dramatic scenes with virtual actors. AR Karaoke is the acting equivalent of traditional karaoke, where the goal is to facilitate an acting experience for the user that is entertaining for both the user and audience. Prototype implementations were created to evaluate various user interfaces and design approach reveal guidelines that are relevant to the design of mixed reality applications in the domains of gaming, performance, and entertainment.