Virtual Reality (VR) is regarded as a useful tool for teleoperation system that provides operators an immersive visual feedback on the robot and the environment. However, without any haptic feedback or physical constructions, VR-based teleoperation systems normally have poor maneuverability and may cause operational faults in some fine movements. In this paper, we employ Mixed Reality (MR), which combines real and virtual worlds, to develop a novel teleoperation system. New system design and control algorithms are proposed. For the system design, a MR interface is developed based on a virtual environment augmented with real-time data from the task space with a goal to enhance the operator’s visual perception. To allow the operator to be freely decoupled from the control loop and offload the operator’s burden, a new interaction proxy is proposed to control the robot. For the control algorithms, two control modes are introduced to improve long-distance movements and fine movements of the MR-based teleoperation. In addition, a set of fuzzy logic based methods are proposed to regulate the position, velocity and force of the robot in order to enhance the system maneuverability and deal with the potential operational faults. Barrier Lyapunov Function (BLF) and back-stepping methods are leveraged to design the control laws and simultaneously guarantee the system stability under state constraints. Experiments conducted using a 6-Degree of Freedom (DoF) robotic arm prove the feasibility of the system.