Abstract. This paper gives an overview of the Jacob project. This project involves the construction of a 3D virtual environment where an animated human-like agent called Jacob gives instruction to the user. The project investigates virtual reality techniques and focuses on three issues: the software engineering aspects of building a virtual reality system, the integration of natural language interaction and other interaction modalities, and the use of agent technology. The Jacob agent complies with the H-Anim standard. It has been given a task model and an instruction model in order to teach the user a particular task. The results of the project can be generalised so that the agent can be used to instruct other tasks in other virtual environments.