Abstract: The present invention relates to a novel interactive virtual reality (VR) performance theater and environment in which a plurality of participants enjoy an entertainment and/or educational experience. The performance is viewed by the participants through VR display devices such as a head mounted display, wherein both an immersive graphical environment and live and/or pre-recorded performers are viewed. The participants exert limited control over the content and outcome of the performance through the use of input devices, such as hand held input devices having a plurality of buttons, and/or voice communications, while viewing the live or pre-recorded performers whom are mixed within the immersive VR environment. The system uses interconnected computers, video and audio processing devices, and furthermore includes a network interconnecting the computers, participants, and live/pre-recorded performers for video, audio, and graphics transmission.