Augmented Reality (AR) systems have been shown to positively affect mental workload and task performance across a broad range of application contexts. Despite the interest in mental workload and the increasing number of studies evaluating AR use, an attempt has yet to be made to identify the relationship between the effects of AR on mental workload and task performance. This paper seeks to address this gap in AR technology literature. With a better understanding how AR affects mental workload and task performance, researchers and developers can design more effective AR systems. 34 articles investigating the effects of the use of AR systems were selected for the review. A positive correlation was found between effects on mental workload and effects on task performance: if the effect on mental workload is positive, then the effects on task performance are more likely to be positive as well, and vice versa. Effectiveness of AR systems were shown to be influenced by the type of AR display device used, relevance and timeliness of content, information presentation, user characteristics and task characteristics. Additionally, the paper addresses the use of the concept of mental workload and limitations in current literature.