The present disclosure discloses a system and method for real time interaction of a real world with a virtual world through an augmentation concept has been provided. The system includes a mobile electronic device compatible with all operating system. The mobile electronic device is having a virtual reality application, on running the application and mounting the mobile electronic device in a virtual reality platform, the display provides two scenes. First scene is a menu scene and the second scene provides stereoscopic image with wide field view in a virtual environment. The system captures a real time image and scans characteristics of IoT based devices. Based on movement of virtual reality platform, the system provides guidance to perform actions on the IoT based devices from the virtual environment.