System for providing interactive two-way audio in desktop virtualization environment, the desktop virtualization environment comprising desktop virtualization server computer and desktop virtualization client endpoint device with associated microphone element. The system incorporates instance of server software executing on the desktop virtualization server and providing interactive user interface functions to associated desktop virtualization client endpoint device; and instance of endpoint software executing on the desktop virtualization client endpoint device including network port, the instance of endpoint software receiving an incoming real-time audio stream from the network port and providing real-time and audio playback functions on the desktop virtualization client endpoint device. In the system, the desktop virtualization client endpoint is configured to: accept real-time audio input from a microphone element associated with the desktop virtualization client endpoint; and provide an outgoing real-time compressed audio stream to the network port responsive to the real-time audio input from the microphone element.