During interaction with computer-based 3-D simulations like virtual reality, users may experience a sense of involvement called presence. Presence is commonly defined as the subjective feeling of "being there". We discuss the state of the art in this innovative research area and introduce a situated cognition perspective on presence. We argue that presence depends on the proper integration of aspects relevant to an agent's movement and perception, to her actions, and to her conception of the overall situation in which she finds herself, as well as on how these aspects mesh with the possibilities for action afforded in the interaction with the artifact. We also aim at showing that studies of presence offer a test-bed for different theories of situated cognition.