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Virtual reality is a technology which is often regarded as a natural extension to 3D computer graphics with advanced input and output devices. This technology has only recently matured enough to warrant serious engineering applications. The integration of this new technology with software systems for engineering, design and manufacturing will provide a new boost to the field of computer-aided engineering. One aspect of design and manufacturing which may be significantly affected by virtual reality is design for assembly. This paper presents the ideas behind a current research effort aimed at creating a virtual assembly design environment and integrating that environment with a commercial, parametric CAD system.