For an interactive simulation of 7 degree-of freedom redundant manipulator under teleoperation, this paper describes an iterative form of resolved-motion rate control in which the constraint Jacobian is constructed on-line in real time and used in the pseudoinverse method as the manipulator is teleoperated. The manipulator's tasks may involve trajectory following in free space and frequent contact with the environment through pick-and-put operation. The operator's command is interpreted as a series of increments in Cartesian space, and then the constraint Jacobian is developed between two successive increments by viewing the predecessor as the initial configuration and the successor as the target configuration. The pseudoinverse of the constraint Jacobian then generates necessary changes in joint variables and subsequently joint torque. The Jacobian constructed in this way enables us to treat both free motion and environmental contact in the same way. The simulator is built on a two-processor IRIS workstation, with one processor for graphics and the other for dynamics and control analysis. This simulator has a potential for training the teleoperator, developing operational scenarios through visualization of the simulation, and testing the design of operator-machine interface.