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How do I improve performance of my Ruger AR556?

The upper receiver is about 70% of the cost of the rifle. If you're dissatisfied with the precision of the Ruger, I'd recommend selling the whole thing and starting over. To be honest, the Ruger ARs aren't known for their quality in the world of ARs. PSA can be hit or miss when it comes to precision and reliability, so a DEFINED goal is needed before your proceed further.

Do you intend to blast steel? If so, how far? Are you shooting paper targets for group or score? If so, how far?

My best recommendation would be to have White Oak build you an upper receiver group. You can build your own lower receiver group with basic hand tools, but you will want as high quality of a trigger as you can get. I prefer Trigger Tech Diamond or Geissele SSA-E triggers.
 
The barrel and trigger make an ar15.
You cannot expect good accuracy from an inexpensive AR, most people that want a very accurate AR build from scratch, it's less expensive than buying one and changing major components, but answer your question, a match grade barrel and a good trigger would be a good start
This guys got it. A quality aftermarket 18-20" rifle length barrel with its extension shimmed tight, a cmc 2.5 lb curved single stage trigger installed, and a free float hand guard can make most stock ar15s shoot better than they have a right to.
 
Between myself and close family we've had three 18" Aero built uppers that have all shot right around a half inch consistently, and not only with expensive ammo either. Hand loads of 55gr SP bulk ammo shot 1/2", as well as everything 69gr we've thrown at them so far. They don't cost a ton and can go right on your Ruger assuming it's a DI version.

Then you need to add the LaRue trigger. You can spend more if you like, but you won't get a more reliable and quality hard use trigger.

Buttstock would be your next consideration if you're going to shoot longer distance. That's basically a personal fit and choice. There's a bunch on the market and many work very well.

As others have said, Long Range is relative and much past 600, the AR is at a serious disadvantage to a quality bolt rifle and a cartridge in 6mm or 6.5mm.
 
Is it a piston gun or standard gas. Aims Surplus has a black and gold trigger on sale now for $99, I have two of the chromed ones and for the money, they are great. Larue has been mentioned also. Very good triggers for the money also. The trigger will help a lot. If the rifle is a standard gas gun, put a tube on it to free float the barrel unless you will be changing the barrel. Do be careful on the barrels, because the market id full of companies that advertise the best barrels, and they are not even the manufacture of the barrels. Folks can have their name put on just about anything if they buy enough of them. Then goes as your funds allow.
 

I bought one of these when Euro Optic had them on sale for $149. I also have a Ruger, but it's the MPR with 18" free floated barrel and rifle gas. It shoots quite well for a mostly stock AR
 
I have a DPMS upper with a 20” bull barrel. Shoots very well for a factory upper. 1 and 9 twist so you can easily shoot 69 grain match kings. Bought the upper used from a local gun store a few years ago. Already has a free float hand guard too. Not sure if DPMS still makes them, but a lot of kit for the money and you can have it shipped directly to your house without the FFL thing to worry about. I’ve shot many sub 1” groups with hand loads from that upper.
 
I was at the Small Arms Firing School and AMU picked up a rack grade 7 pound M16 by the trigger and it didn’t break. That old triburst was 8-9 pounds. Point was it is hard to shoot a light rifle with a heavy trigger without disturbing the sights.
 

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