Laurel joined Atari Research, where she explored innovative user interfaces and game design concepts. This experience exposed her to the cutting edge of computer technology and its potential for interactive experiences.

Laurel published 'Interactivity: Interactivity as Theater', a seminal work that drew parallels between interactive systems and dramatic arts, significantly influencing HCI theory and practice. It argued for understanding users as actors in a virtual stage.

Laurel worked at Interval Research Corporation, a think tank founded by Paul Allen. There she continued her work on virtual reality and interactive narrative, furthering her research and development in these areas.

Laurel worked on the Placeholder VR project, a groundbreaking virtual reality experience that explored alternative forms of interaction and embodied presence. This project was significant in shaping the future direction of VR research.

Laurel publishes 'Computers as Theatre', a further exploration of how design can be improved by understanding and taking account of the role of human action and feeling.