Abstract: This disclosure describes systems and methods for true interaction between a plurality of users (e.g., and their respective avatars) in real-time within a virtual reality environment. The disclosed system can provide virtual, physicalized objects (e.g., virtual object representations) that can be handed around among users (avatars), jointly lifted, carried and placed, while maintaining a smooth continuity of experience and plausible physical simulation that comports with a person's typical and expected experience of a given physical environment. Furthermore, it can achieve this even with low and variable bandwidth between users, or users and a central communication server.