In this paper, we propose a synchronization scheme to achieve a high level of consistency in peer-to-peer-based shared virtual environments (SVEs), as well as to display natural and realistic motions of virtual objects, in collaborative haptic tasks. The synchronization scheme utilizes an advanced feedback controller to compensate for the state error between geographically separated sites with a significant amount of time delay. It is designed using the mathematical model of a two-user SVE manipulating a freely moving object represented as a mass with damping resistance, with a haptic interface. Thanks to feedback control theory of time delay systems, the controller is shown to result in closed-loop stability and is be robust to perturbations in the time delay. Together with the synchronization control, a recovery filter is also designed and integrated so as to preserve the natural behavior of the synchronized object, which is, otherwise, affected by the feedback control action. In addition to verifying the theoretical results, two experiments using real Internet and local area network communications are carried out. These tests clearly support the validity of the analyses and demonstrate the applicability of the synchronization scheme. © 2007 VSP.