Networked haptic cooperation entails direct interaction among users as well as joint manipulation of virtual objects. To increase the realism of both types of interactions, this paper introduces remote dynamic proxies. Remote dynamic proxies are second order dynamic representations of users at the remote peer sites. They are generated according to dynamics laws and are controlled by the user whom they represent through a virtual coupler. Hence, they move in a physically intuitive manner and do not suffer from position discontinuities due to network packet transmission limitations. The remote dynamic proxies are integrated into a distributed control architecture for networked haptic cooperation. An experimental comparison of the new controller to two recently proposed controllers demonstrates smoother rendering of contact between users, as well as stable cooperation for larger network delays.