The superquadric description is usedin modeling the virtual objects in AVR (from ActualReality to Virtual Reality).However,due to the in-trinsic property,the superquadric and its deforma-tion extensions (DSQ) are not flexible enough to de-scribe precisely the complex objects with asymmetryand free form surface.To solve the problem,a hierar-chical reconstruction approach in AVR for virtualizingthe objects with superquadric based models from 3Ddata is developed.Firstly,an initial approximation isproduced by a superquadric fit to the 3D data.Then,the crude superquadric fit is refined by fitting theresidue (distance map) with global and local DirectManipulation of Free-Form Deformation (DMFFD).The key elements of the hierarchical method,includ-ing superquadric fit to 3D data,mathematical detailsand the recursive-fitting algorithm for DMFFD,com-putation of distance maps,adaptive refinement anddecimation of polygon mesh under DMFFD,are pro-posed.An implementation example of hierarchicalreconstruction is presented.The proposed approachis shown competent and efficient for virtualizing thecomplex objects into virtual environment.