In this thesis, the concept of virtual reality has been elaborated in the context of games, industrial design and manufacturing. The main purpose of this master’s thesis is to create a virtual environment for games that are near to the reality and according to the human nature through aspects like better interface, simulation, lights, shadow effects and their types. The importance of these aspects regarding realistic virtual environment is complemented through the comparison between two environments i.e. desktop and CAVE on a flight simulation program.