This study investigated the contribution of a location-based augmented reality (AR) inquiry-learning environment in developing 3rd grade students' historical empathy and conceptual understanding. Historical empathy is an important element of historical thinking, which is considered to improve conceptual understanding and support the development of democratic citizens by helping students interpret, understand and connect patterns of human activity across time. Fifty-three 3rd grade students, grouped in two research conditions, participated in this study. Students visited an archaeological site with and without the support of an AR learning environment on mobile tablet devices. Data from all students were collected following a pre- and post-test design. Twelve students from the AR condition participated in individual interviews and all AR students took a delayed post-test. The results showed that students' conceptual understanding and historical empathy increased from pre to post for both conditions. Statistically significant differences were found between the AR field trip and the traditional field trip students in the development of empathy and conceptual understanding. These results add to the literature by supporting the potential of AR technologies for the development of students' historical empathy; several design implications are also discussed.