Current small arms training is limited to either live ammunition training, which is both expensive and limited to specific ranges and times, or laser based Tactical Engagement Simulation System (TESS) training which has some potentially negative training implications, since it has no visual blast effects, does not simulate time of flight and leading of moving targets and does not work for Non-Line Of Sight (NLOS) scenarios. Additionally, live ammunition training is limited to Force on Target training with extremely limited scenarios (no movers, same old targets); while laser based TESS training does allow Force on Force training it is limited by the scheduling of exercises, range time availability and limitation of scenarios possible with live forces. In this paper, we present technical algorithms, system description and experiment results for a prototype Augmented Reality (AR) based system that addresses the limitations of both live ammo and laser TESS training. The AR based dismount weapon training system provides fully geo-located 6-degrees of freedom orientation and location of the weapon and of the trainee operating it, thus allowing the weapon to fire simulated projectiles for both direct fire and NLOS during live training. Using this tracking and a terrain model of the environment, the fully virtual projectiles and synthetic enemies are displayed on the trainee's head mounted display overlaid on top of the real world and full blast effects and simulated damage are displayed allowing the soldier to adjust fire accordingly. Since the projectiles, weapon characteristics and enemy combatants are all simulated they can easily be changed to vary scenarios, new projectile types and future weapons. Additionally, turn-around time on scenarios is very quick allowing more training in shorter amount of time in any available live environment, without the need to schedule range time, Opposition Forces, training ammo or any other logistical requirements.