This paper presents the Interactive Space for Digital Storytelling (ISDS) which enables spatial interaction between the audience and the \"media-actors\" (i.e., recorded video clips of actors). The system features interaction modules to handle the response of the \"spect- actor\" (the participant) and manage the progress of the story, titled The Cocktail Party. Demonstration of the system proved its potential as a new interactive storytelling platform. ? 2009 Springer-Verlag.