Abstract: A system for incorporating physical objects into a virtual environment is provided herein. The system includes one or more capturing devices configured to capture physical objects located on a surface; an image enhancing module configured to manipulate the captured image to facilitate distinguishing the physical objects from the surface; an image processing module configured to extract outline of each one of the physical objects; a polygon generator configured to generate a polygon for each one of the physical objects; and a display control module configured to combine the polygons with virtual objects in accordance with predefined rules of a virtual environment.