This paper describes a new technique for synthesizing realistic sounds for virtual environments. The four-phase technique described uses wavelet analysis to create a sound model. Parameters are extracted from the model to provide dynamic sound synthesis control from a virtual environment simulation. Sounds can be synthesized in real time using the fast inverse wavelet transform. Perceptual experiment validation is an integral part of the model development process. This paper describes the four-phase process for creating the parameterized sound models. Several developed models and perceptual experiments for validating the sound synthesis veracity are described. The developed models and results demonstrate proof of the concept and illustrate the potential of this approach.