A method and system for real-time auralization is described in which room sounds are reverberated and presented over loudspeakers, thereby augmenting the acoustics of the space. Room microphones are used to capture room sound sources, with their outputs processed in a canceler to remove the synthetic reverberation also present in the room. Doing so gives precise control over the auralization while suppressing feedback. It also allows freedom of movement and creates a more natural acoustic environment for performers or participants in music, theater, gaming, home entertainment, and virtual reality applications. Canceler design methods are described, including techniques for handling varying loudspeaker-microphone transfer functions such as would be present in the context of a performance or installation.