In this talk, I will present our current work toward endowing virtual agents with socio-emotional capabilities.I will start describing an interactive system of an agent dialoging with human users in an emotionally colored manner.Through its behaviors, the agent can sustain a conversation as well as show various attitudes and levels of engagement.I will present our latest work on laughter.I will address several issues such as: how to animate laughter in a virtual agent looking particularly at rhythmic movements; how to laugh with human participant and how laughing agent is perceived.