This thesis examines the benefits of haptics-based interaction for performing assembly-related tasks in a virtual environment. A software application that combined freeware and open-source software development kits was developed and demonstrated principles of physics-based modeling in a haptics-enabled immersive virtual environment. A user study was designed to evaluate subjects in performing a series of experiments relevant to the assembly engineering process including weight recognition, part positioning, and assembly simulation. Each experiment featured a structure based on factorial combinations of effects, resulting in a series of designed trials. Methods of assessing user performance were established based on task completion time and accuracy. Using a randomized complete block design, a sample population of forty individuals performed all trials within the experiments in random sequences. Statistical methods were used to analyze the performances of individuals upon the conclusion of the study. When compared to visualsonly methods, the results show that haptics-based interaction is beneficial in improving performance including reduced completion times for weight comparisons, higher placement accuracy when positioning virtual objects, and steadier hand motions along threedimensional trajectories. Furthermore, the results indicate that the accuracy in weight identification is dependent on both the hand controlling the object and sensory modality used. The study was inconclusive in determining the affect of haptics-based interaction on completion times when positioning objects or completing manual assembly tasks.