An embodiment in accordance with the present invention provides a system and method for binaural rendering of complex acoustic scenes. The system includes a computing device configured to process a sound recording of the acoustic scene to produce a binaurally rendered scene for the listener. The system also includes a position sensor configured to collect motion and position data for a head of the user and also configured to transmit said motion and position data to the computing device. A sound delivery device is configured to receive the binaurally rendered acoustic scene from the computing device and to transmit the acoustic scene to the ears of the listener. In the system, the computing device is further configured to utilize the motion and position data from the inertial motion sensor to process the sound recording of the acoustic scene with respect to the motion and position of the user's head.