Abstract-- A structural model is presented for synthesizing binaural sound from a monaural source. The model produces well-controlled vertical as well as horizontal effects. The model is based on a simplified time-domain description of the physics of wave propagation and diffraction. The components of the model have a one-to-one correspondence with the physical sources of sound diffraction, delay, and reflection. The simplicity of the model permits efficient implementation in DSP hardware, and thus facilitates real-time operation. Additionally, the parameters in the model can be adjusted to fit a particular individual's characteristics, thereby producing individualized head-related transfer functions. Experimental tests verify the perceptual effectiveness of the approach.