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This paper describes an inexpensive pico-projector-based augmented reality (AR) display for a surgical microscope. The system is designed for use with Micron, an active handheld surgical tool that cancels hand tremor of surgeons to improve microsurgical accuracy. Using the AR display, virtual cues can be injected into the microscope view to track the movement of the tip of Micron, show the desired position, and indicate the position error. Cues can be used to maintain high performance by helping the surgeon to avoid drifting out of the workspace of the instrument. Also, boundary information such as the view range of the cameras that record surgical procedures can be displayed to tell surgeons the operation area. Furthermore, numerical, textual, or graphical information can be displayed, showing such things as tool tip depth in the work space and on/off status of the canceling function of Micron.