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Deficits in social communication skills are thought to be one of the core deficits in children with autism spectrum disorders. Specifically, these children are characterized by communicative impairments, particularly regarding expression of affective states. However, they often experience states of emotional or cognitive stress measured as Autonomic Nervous System activation without proper external expression placing limits on traditional conversational and observational methodologies. In recent years, several assistive technologies, particularly Virtual Reality (VR), have been investigated to promote social interactions in this population. Here we present the development of a VR-based social communication system that is made affect-sensitive by using a physiology based approach.