TAU Tracker – modular tracking system purposed for VR developers and training systems. It's based on our own magnetic-inertial technology. Sensors are fixed on a body or object, system perform measurements and estimates position and orientation of sensors in a volume where weak magnetic field is created. Further, estimated data are passed to visualization system. Technology does not use cameras, not affected by blind zones or accumulated error problems and provides immersion experience for users and intuitive interaction with virtual world. Our first goal is to complete two handed tracker version, due to an architecture of the system it will be scaled further to full body version. Also, we are working on a room scale tracking.