A system and method for navigation graph generation in real time is provided including a dictionary operable to maintain information mapping surface features to navigational costs. Further included is a graphical module operable to transform geometrical data of a virtual world and associated navigational costs obtained from the dictionary into navigation data; a graph-generation module operable to translate the navigation data into a semi-generated navigation graph; and a physical module operable to receive the semi-generated navigation graph, and generate an updated navigation graph based on collisions test.