Virtual training systems are attracting paramount attention from the manufacturing industries due to their potential advantages over the conventional training practices such as general assembly. Within this virtual training realm for general assembly, a haptically enabled interactive and immersive virtual reality (HIVEx) system is presented. The idea is to imitate real assembly training scenarios by providing comprehensive user interaction as well as by enforcing physical constraints within the virtual environment through the use of haptics technology. The developed system employs a modular system approach providing flexibility of reconfiguration and scalability as well as better utilization of the current multi-core computer architecture. The user interacts with the system using haptics device and data glove while fully immersed into the virtual environment with depth perception. An evaluation module, incorporated into the system, automatically logs and evaluates the information through the simulation providing user performance and improvements over time. A ruggedized portable version of the system is also developed and presented with full system capabilities allowing easy relocation with different factory environments. A number of training scenarios has been developed with varying degree of complexity to exploit the potential of the presented system. The presented system can be employed for teaching and training of existing assembly processes as well as the design of new optimised assembly operations. Furthermore, the presented system can assist in optimizing existing practices by evaluating the effectiveness and the level of knowledge transfer involved in the process. Within the aforementioned conceptual. framework, a working prototype is developed.