Distances tend to be underperceived in virtual environments (VEs) by up to 50%, whereas distances tend to be perceived accurately in the real world. Previous work has shown that allowing participants to interact with the VE while receiving continual visual feedback can reduce this underperception. Judgments of virtual object size have been used to measure whether this improvement is due to the rescaling of perceived space, but there is disagreement within the literature as to whether judgments of object size benefit from interaction with feedback. This study contributes to that discussion by employing a more natural measure of object size. We also examined whether any improvement in virtual distance perception was limited to the space used for interaction (1–5 m) or extended beyond (7–11 m). The results indicated that object size judgments do benefit from interaction with the VE, and that this benefit extends to distances beyond the explored space.