Abstract: Photorealistic rendering codes must somehow numerically solve the rendering equation. Ray tracers use Monte Carlo methods while radiosity systems use finite element methods. These both yield accurate solutions but are computationally expensive and typically non-interactive. Many interactive environments rely on precomputation of static environments to form progressive radiosity solutions. These suffer from large computational overhead and unchangeable geometry. Some techniques have used graphics hardware to get photorealistic effects but not at interactive frame rates. In this paper we propose a technique to achieve near photorealism of simple indoor scenes at interactive rates using both CPUs and graphics hardware in parallel. This allows the user the flexibility of interactively moving objects as well as lights in the scene. Our goal is to introduce as many photorealistic effects as possible while maintaining a high frame rate. We describe methods of generating soft shadows, approximate one-bounce indirect lighting and specular reflection and refraction effects.