We report on our first results in integrating multi-agent interactions into UCB motes. This work is part of our efforts to explore the development of pervasive and context-aware environments. We have developed an augmented reality version of the Knights and Dragon game. In this article we introduce the multi-agent paradigm, explain how it could help tackle the challenges associated with creating pervasive and context-aware environment, share the experience acquired while developing the Knights and Dragon application and propose an agenda of further open issues.