A method is presented to rapidly incorporate real objects into virtual environments using laser scanned 3D models with color-based marker tracking. Both the real objects and their geometric models are put into a Mixed Environment (ME). In the ME, users can manipulate the scanned, articulated real objects, such as tools, parts, and physical correlates to complex computer-aided design (CAD) models. Our aim is to allow engineering teams to effectively conduct hands-on assembly design verification. This task would be simulated at a high degree of fidelity, and would benefit from the natural interaction afforded by a ME with many specific real objects.