A head-mounted device , comprising: a depth camera configured to make an image of a physical environment ; one or more motion sensors configured to measure one or more motion parameters; a left ear speaker and a right ear speaker ; a processing system ; and a storage system holding instructions executable by the processing system to generate a virtual model of the physical environment based upon one or more depth images from the depth camera ; determine a pose of the head-mounted device in the physical environment based upon the one or more motion parameters from the one or more motion sensors ; cast an array of rays at specified angles from a position derived from the pose of the head-mounted device ; identify a plurality of intersection points of the rays with the virtual model ; for each intersection point of the plurality of intersection points , modify an input audio signal based on a head related transfer function, HRTF, corresponding to the intersection point to produce a spatialized audio signal corresponding to the intersection point ; for each spatialized audio signal of a plurality of spatialized audio signals corresponding to the plurality of intersection points , determine a time-of-flight adjustment based upon a distance between the corresponding intersection point and the position from which the rays were cast; and for each spatialized audio signal of the plurality of spatialized audio signals , output the spatialized audio signal to one or more of the left ear speaker and the right ear speaker with a delay corresponding to the time-of-flight adjustment for the spatialized audio signal . a depth camera configured to make an image of a physical environment ; one or more motion sensors configured to measure one or more motion parameters; a left ear speaker and a right ear speaker ; a processing system ; and a storage system holding instructions executable by the processing system to generate a virtual model of the physical environment based upon one or more depth images from the depth camera ; determine a pose of the head-mounted device in the physical environment based upon the one or more motion parameters from the one or more motion sensors ; cast an array of rays at specified angles from a position derived from the pose of the head-mounted device ; identify a plurality of intersection points of the rays with the virtual model ; for each intersection point of the plurality of intersection points , modify an input audio signal based on a head related transfer function, HRTF, corresponding to the intersection point to produce a spatialized audio signal corresponding to the intersection point ; for each spatialized audio signal of a plurality of spatialized audio signals corresponding to the plurality of intersection points , determine a time-of-flight adjustment based upon a distance between the corresponding intersection point and the position from which the rays were cast; and for each spatialized audio signal of the plurality of spatialized audio signals , output the spatialized audio signal to one or more of the left ear speaker and the right ear speaker with a delay corresponding to the time-of-flight adjustment for the spatialized audio signal . <EOS>