Various techniques can be used to improve real-time 3D graphics. Two general parts are present, visual appeal and performance. Different techniques are used to improve these two elements of computer graphics, some of which are discussed in-depth in this thesis. Shadow volumes with stencil buffers is one of the leading techniques used today when it comes to realistic shadows for real-time 3D applications. This approach to shadowing is one of the primary topics of this thesis. The second topic focused upon is octrees using portals, which is an approach to improve performance in real-time 3D rendering. Bump mapping is also discussed. Some other 3D concepts are also touched upon, mainly to highlight the advantages of the previously mentioned techniques and also to illustrate why they were chosen instead of other available options. The goal of this thesis is to improve upon a 3D graphics engine to create a more visually pleasing world. Both visual appeal and performance enhancing elements are used to create a dynamically lit environment.