Embodiments related to efficiently constructing an augmented reality environment with global illumination effects are disclosed. For example, one disclosed embodiment provides a method of displaying an augmented reality image via a display device. The method includes receiving image data, the image data capturing an image of a local environment of the display device, and identifying a physical feature of the local environment via the image data. The method further includes constructing an augmented reality image of a virtual structure for display over the physical feature in spatial registration with the physical feature from a viewpoint of a user, the augmented reality image comprising a plurality of modular virtual structure segments arranged in adjacent locations to form the virtual structure feature, each modular virtual structure segment comprising a pre-computed global illumination effect, and outputting the augmented reality image to the display device.