diff --git a/client/garageserver.io.js b/client/garageserver.io.js
index bd95945..75e1b59 100644
--- a/client/garageserver.io.js
+++ b/client/garageserver.io.js
@@ -7,7 +7,7 @@ options = {
     onPlayerRemove: function (id),
     onPing: function (data),
     onUpdatePlayerPhysics: function (state, inputs),
-    onInterpolation: function(previousState, targetState, amount)
+    onInterpolation: function(currentState, previousState, targetState, amount, delta)
     logging: true,
     clientSidePrediction: true,
     interpolation: true,
@@ -220,7 +220,7 @@ window.GarageServerIO = (function (window, socketio) {
                     if (options.interpolation && options.onInterpolation) {
                         var positions = getPositions(players[playerIdx].updates);
                         if (positions.previousState && positions.targetState) {
-                            stateCallback(options.onInterpolation(positions.previousState, positions.targetState, positions.amount));
+                            stateCallback(options.onInterpolation(players[playerIdx].updates[maxUpdate].state, positions.previousState, positions.targetState, positions.amount, 0.015));
                         }
                         else {
                             stateCallback(players[playerIdx].updates[maxUpdate].state);
diff --git a/example/public/javascripts/game.js b/example/public/javascripts/game.js
index fa5e52e..e1dcffe 100644
--- a/example/public/javascripts/game.js
+++ b/example/public/javascripts/game.js
@@ -2,7 +2,7 @@ $(function () {
     GarageServerIO.connectToGarageServer('http://garageserver_io.jbillmann.c9.io', { 
         logging: true,
         clientSidePrediction: true,
-        //interpolation: true,
+        interpolation: true,
         onUpdatePlayerPhysics: function (state, inputs) {
             var i = 0;
             if (!state.x && !state.y) {
@@ -22,13 +22,17 @@ $(function () {
             }
             return state;
         },
-        onInterpolation: function (previousState, targetState, amount) {
-            var newState = {};
+        onInterpolation: function (currentState, previousState, targetState, amount, delta) {
+            var interpolationState = {},
+                smoothState = {};
 
-            newState.x = (previousState.x + amount * (targetState.x - previousState.x));
-            newState.y = (previousState.y + amount * (targetState.y - previousState.y));
+            interpolationState.x = (previousState.x + amount * (targetState.x - previousState.x));
+            interpolationState.y = (previousState.y + amount * (targetState.y - previousState.y));
+            
+            smoothState.x = (currentState.x + (20 * delta) * (interpolationState.x - currentState.x));
+            smoothState.y = (currentState.y + (20 * delta) * (interpolationState.y - currentState.y));
 
-            return newState;
+            return smoothState;
         }
     });