Innovation in pedagogy by technology integration in kindergarten classroom has always been a challenge for most teachers. This design-based research aimed to explore the feasibility of using Augmented Reality (AR) technology in early art education with a focus on the gains and pains of this innovation. A case study was conducted in a typical kindergarten in Hong Kong, with a class of four- to five-year-old children (N=30) and their class teacher, ICT teacher as well as two parent volunteers. A series of art education activities using AR was designed and implemented in the class. Effectiveness of the activities was evaluated through a triangulation of semi-structured interviews with teachers, principal and parents, and surveys administered to children. The results indicated that (1) all the children could design, control and interact with the animated objects generated by the AR application; (2) all the stakeholders interviewed were supportive of this pedagogical innovation and (3) the principal, teachers and parents were concerned about the side effects of using AR in early childhood education. Possible improvements and implications to AR-based art education were also addressed. (author abstract)