A sighting system based on the Galileo telescope structure generally suffers from the lack of a reticle, which poses great challenges to target aiming. In this work, a hybrid Galilean sighting system integrated with an augmented reality (AR) component is proposed, which produces an image of the reticle to serve as a reticle. The depth of the reticle can be adjusted flexibly to superpose with the image of the observed object. The designed system features a fourfold magnification, a large modulation transfer function (MTF)>0.3 at 40 lp/mm, and a small distortion less than 0.3% in the full field of view. The superb imaging performance combined with the targeting function of the AR reticle renders the proposed design a powerful tool in the applications of target tracking.