An interactive directed beam system is provided. In one implementation, the system includes a projector, a computer and a camera. The camera is configured to view and capture information in an interactive area. The captured information may take various forms, such as, an image and/or audio data. The captured information is based on actions taken by an object, such as, a person within the interactive area. Such actions include, for example, natural movements of the person and interactions between the person and an image projected by the projector. The captured information from the camera is then sent to the computer for processing. The computer performs one or more processes to extract certain information, such as, the relative location of the person within the interactive area for use in controlling the projector. Based on the results generated by the processes, the computer directs the projector to adjust the projected image accordingly. The projected image can move anywhere within the confines of the interactive area.