The use of technology can be a key element in strengthening the art of independent learning. This paper discusses the issues in creating an interactive educational environment, most suited to children. We introduce the features of the interactive learning system (ILS); a software which is an integration of teaching, training, testing, learning, analyzing, and mastering; with a high level of interactivity. We have in the course defined a simulation of a human teacher to be the interface for the learning process, which is the primary focus of this paper. This simulated agent also learns from its users and shares the information gained via the Internet paving way for a rapidly growing KnowledgeBASE. By making use of both desktop and distributed computing, ILS can emerge as a global system.