Just as readers feel immersed when the story-line adheres to their experiences, users will more easily feel immersed in a virtual environment if the behavior of the characters in that environment adheres to their expectations, based on their life-long observations in the real world. This paper introduces a framework that allows authors to establish natural, human-like behavior, physical interaction and emotional engagement of characters living in a virtual environment. Represented by realistic virtual characters, this framework allows people to feel immersed in an Internet based virtual world in which they can meet and share experiences in a natural way as they can meet and share experiences in real life. Rather than just being visualized in a 3D space, the virtual characters (autonomous agents as well as avatars representing users) in the immersive environment facilitate social interaction and multi-party collaboration, mixing virtual with real.