A system and a method for enhancing a user's immersion in a mixed reality mode of head-mounted display apparatus, the system being at least communicably coupled to the aforesaid display apparatus. The system includes at least one camera communicably coupled to a processor. The processor controls said camera to capture sequence of images of real-world environment; analyse sequence of images to identify spatial geometry of real objects in real-world environment and material categories to which real objects belong; process sequence of images to generate sequence of mixed-reality images, based upon spatial geometry and material category of at least one real object that is represented by at least one virtual object in sequence of mixed-reality images, wherein visual behaviour of at least one virtual object emulates at least one material property associated with material category of the at least one real object; and render the sequence of mixed-reality images.