The invention provides compact haptic and augmented virtual reality system that produces an augmented reality environment. The system is equipped with software and devices that provide users with stereoscopic visualization and force feedback simultaneously in real time. High resolution, high pixel density, head and hand tracking ability are provided. Well-matched haptics and graphics volumes are realized. Systems of the invention are compact, making use of a standard personal display device, e.g., a computer monitor, as the display driver. Systems of the invention may therefore be inexpensive compared to many conventional virtual reality systems.