An information processing apparatus creates a first virtual object expressing a physical object that is detected from physical object information obtained from a physical object information acquisition unit. The information processing apparatus determines a display state of the first virtual object in accordance with a result of detecting collision between the first virtual object and a second virtual object. The information processing apparatus creates, on the basis of a virtual space including the first virtual object and the second virtual object, position-orientation of an HMD, the determined display state, and a physical space image obtained from the HMD, a mixed reality image in combination of an image of the virtual space and the physical space image, and displays the created mixed reality image on the HMD.