We have developed a system which enables us to track participant-observers accurately in a large area for the purpose of immersing them in a mixed reality environment. This system is robust even under uncompromising lighting conditions. Accurate tracking of the observer’s spatial and orientation point of view is achieved by using hybrid inertial sensors and computer vision techniques. We demonstrate our results by presenting life-size, animated human avatars sitting in real chairs, in a stable and low-jitter manner. The system installation allows the observers to freely walk around and navigate themselves in the environment even while still being able to see the avatars from various angles. The project installation provides and exciting way for cultural and historical narratives to be presented vividly in the real present world.