Augmented Reality (AR) systems which use optical tracking with fiducial marker for registration have had an important role in popularizing this technology, since only a personal computer with a conventional webcam is required. However, in most these applications, the virtual elements are shown only in the foreground a real element does not occlude a virtual one. The method presented enables AR environments based on fiducial markers to support mutual occlusion between a real element and many virtual ones, according to the elements position (depth) in the environment. © 2012 IEEE.