The thesis describes the process and outcomes of an enquiry into the synthesis of light and material, digital imagery and physical surface and the ambiguities resulting from this. The research subject evolved from the underlying concept of the ambiguity of visual perception, in particular in relation to space. The primary objective has been to create ambiguous and visually mutable spaces, which can be experienced on a visual and tactile level. This has been achieved through projecting digital imagery onto (printed) surfaces and materials of various visual qualities. Thereby it was central to the research to investigate how the illusionary can be utilised for generating aesthetic experiences. The research was undertaken against the contextual background of current trends in Western culture, its architecture, interior design and evolving uses of public space which are striving for flexible environments combined with sensuous experiences; as we!1 as of recent developments within digital technology and media, introducing tactility and materiality to the digital display. The research successfully pursued the main objective - to create an ambiguous, mutable and hybrid environment, where physical and illusionary space was experienced as an entity. It is one of the research's main achievements that new ground has been broken in terms of combining projection and surface material. These investigations, which included several series of experiments, generated vast amounts of diverse and multi-faceted visual knowledge. Further the project succeeded in the attempt to provide spatial encounters which originated. from the discipline of textile design, but left behind the limitations of the two-dimensional surface. The research - a project of an interdisciplinary nature - has generated a design concept that can be applied within a wide range of different contexts, reaching from architecture to design to art.