The AR Camera is an item found at the beginning of the game (Nintendogs + Cats only) in the Toys section of the Supplies list, and the player is unable to sell it from the beginning. It uses the 3DS's camera and AR Cards (they come bundled with the system) to make an Augmented Reality toy in Nintendogs. With adequate lighting, the player needs only to place an AR card somewhere well-lit, whether on a desk, the floor, or even their hand, and point the 3DS camera at it. The two should be about 6 inches away from each other, like in the AR Games application that comes with the 3DS software. Then, the player will see their puppy projected onto their real environment. The puppy can perform tricks, jump around, etc. here. The AR Camera is also used for the Obedience Trial.
There are 6 different AR Cards, and each has a different effect on your puppy. For example, if the player used the ? AR Card, the puppy will be normal. If the player uses the Super Mario AR Card, the puppy will be wearing a Super Mario hat.