This book chapter explores issues of interaction and stereoscopic display in multiscale virtual environments. When interaction, especially direct manipulation, is combined with stereoscopic display, there are trade-offs that must be considered when optimizing both. The chapter addresses the design issues for different types of large displays and then concentrates on the virtual workbench for an implementation that balances interaction and stereoscopic display needs. The general importance of recognizing and using specifically defined geometric areas of user interest is demonstrated. A multi-scale application is then developed, and the implementation is evaluated. When good and stable stereoscopic display is present, users gain much in their ability to perceive shape, depth, and spatial relations. This makes interaction techniques more powerful and suggests new techniques.