In augmented reality (AR), virtual objects and information are overlaid onto the user’s view of the physical world and can appear to become part of the real-world. Accurate registration of virtual objects is a key requirement for an effective and natural AR system, but misregistration can break the illusion of virtual objects being part of the real-world and disrupt immersion. End-to-end system latency severely impacts the quality of AR registration. In this research, we present a controlled study that aims at a deeper understanding of the effects of latency on virtual and real-world imagery and its influences on task performance in an AR training task. We utilize an AR simulation approach, in which an outdoor AR training task is simulated in a high-fidelity virtual reality (VR) system. The real and augmented portions of the AR training scenarios are simulated in VR, affording us detailed control over a variety of immersion parameters and the ability to explore the effects of different types of simulated latency. We utilized a representative task inspired by outdoor AR military training systems to compare various AR system configurations, including optical see-through and video see-through setups with both matched and unmatched levels of real and virtual objects latency. Our findings indicate that users are able to perform significantly better when virtual and real-world latencies are matched (as in the case of simulated video see-through AR with perfect augmentation-to-real-world registration). Unequal levels of latency led to reduction in performance, even when overall latency levels were lower compared to the matched case. The relative results hold up with increased overall latency.