Background and Aim: Jaw surgery based on augmented reality (AR) still has limitations in terms of navigating narrow areas. Surgeons need to avoid nerves, vessels, and teeth in their entirety, not just root canals. Inaccurate positioning of the surgical instrument may lead to positional or navigational errors and can result in cut blood vessels, nerve channels, or root canals. This research aims to decrease the positional error during surgery and improve navigational accuracy by reducing the positional error.Methodology: The proposed 2D/3D system tracks the surgical instrument, consisting of the shaft and the cutting element, each part being assigned a different feature description.In the case of the 3D position estimation, the input vector is composed of image descriptors of the instrument and the output value consists of 3D coordinates of the cutter.Results: Sample results from a jawbone-maxillary and mandibular jaw-demonstrate that the positional error is reduced. The system, thus, led to an improvement in alignment of the video accuracy by 0.25 to 0.35 mm from 0.40 to 0.55 mm and a decrease in processing time of 11 to 14 frames per second (fps) against 8 to 12 fps of existing solutions.Conclusion: The proposed system is focused on overlaying only on the area to be operated on. Thus, this AR-based study contributes to accuracy in navigation of the deeper anatomical corridors through increased accuracy in positioning of surgical instruments.