Handheld Augmented Reality (AR) is often presented using the magic-lens paradigm in which a magic-lens is a transparent interface. However, the majority of handheld devices are not transparent which means that transparency is usually implemented by rendering camera captured video on the device’s screen. The quality of such transparency is thus limited by the video stream quality which in turn may be affected by unfocused camera lens, poor lighting conditions and limited video stream resolution. All these factors may reduce the readability of the captured AR scene. This paper presents an enhanced virtual transparency solution which addresses quality of rendering to increase scene readability. This enhanced virtual transparency is demonstrated through the design and implementation of a magnification glass application running on commercially available mobile phone.