Tangible Space Initiative (TSI) is a new internal project initiated by Korea Institute of Science and Technology (KIST) to explore novel integration framework for next generation Human Computer Interface (HCI) issues for interacting with 3D virtual environment The initiative involves diverse related fields such as virtual reality (VR), intelligent control, human robotics, image processing, multimedia database, and artificial intelligence. TSI treats the barrier between the physical interface environment and the virtual environment as a malleable structure that can be reshaped and colored according to the necessary realism required by the inhabitant the user. The user may exist partially in the physical environment as well as in the virtual environment depending on the interface affordances required by the task situation. We divide the TSI effort led by three parallel and cooperative components: Tangible Interface (TI), Responsive Cyber Space (RCS), and Tangible Agent (TA). TI covers how the user sees and manipulates the 3D cyber space directly. RCS creates and controls the virtual environment with its objects and behaviors. TA may sense and act upon the physical interface environment on behalf of any components of TSI. We bring these three elements together in a particular application context, Heritage Alive for exploring and learning heritage.