Presence, the “perceptual illusion of non-mediation,” is often a central goal in mediated and mixed environments, and sound is believed to be crucial for inducing high-presence experiences. This chapter provides a review of the state of the art within presence research related to auditory environments. Various sound parameters such as externalization and spaciousness and consistency within and across modalities are discussed in relation to their presence-inducing effects. Moreover, these parameters are related to the use of audio in mixed realities and example applications are discussed. Finally, we give an account of the technological possibilities and challenges within the area of presence-inducing sound rendering and presentation for mixed realities and outline future research aims.