Augmented reality is a research area that tries to embody an electronic information space within the real world, through computational devices. A crucial issue within this area, is the recognition of real world objects or situations. In natural language processing, it is much easier to determine interpretations of utterances, even if they are ill-formed, when the context or situation is fixed. We therefore introduce robust, natural language processing into a system of augmented reality with situation awareness. Based on this idea, we have developed a portable system, called the Ubiquitous Talker. This consists of an LCD display that reflects the scene at which a user is looking as if it is a transparent glass, a CCD camera for recognizing real world objects with color-bar ID codes, a microphone for recognizing a human voice and a speaker which outputs a synthesized voice. The Ubiquitous Talker provides its user with some information related to a recognized object, by using the display and voice. It also accepts requests or questions as voice inputs. The user feels as if he/she is talking with the object itself through the system.