A system and method for monitoring a surgical site employs a fiducial reference with attached tracking marker. The marker may be tracked by a tracker. Image information about the surgical site is provided to a controller that updates a model of the surgical site derived from a prior scan of the surgical site. The system and method allow the user to select between monitoring the real surgery and performing virtual surgery using a digital manipulator device. The system may be operated with the user located remotely from the surgical site and operating a remotely operable surgical instrument controlled by the digital manipulator device. The system can select between employing a stationary model and a model that is updated in real time based on the real time image information from the surgical site. The manipulator device may be a haptic feedback device and the haptic feedback may be optionally employed.
