A system and related methods for visually augmenting an appearance of a physical environment as seen by a user through a head-mounted display device are provided. In one embodiment, a virtual environment generating program receives eye-tracking information, lighting information, and depth information from the head-mounted display. The program generates a virtual environment that models the physical environment and is based on the lighting information and the distance of a real-world object from the head-mounted display. The program visually augments a virtual object representation in the virtual environment based on the eye-tracking information, and renders the virtual object representation on a transparent display of the head-mounted display device.