The World Heritage listed site covers about 26sqkm, comprising hundreds of Hindu and Jain temples, according to the Global Heritage Fund.
It was the capital of the Vijayanagar Empire, founded in 1336AD.
A component of the Melbourne Museum showcase will be 3D stereographic panoramas of Hampi, combining mythological and archaeological details, with high-quality sound recordings and high-resolution images.
Ms Kenderdine and crew visited the ancient site and trained Indian animators in stereographics.
"The whole rendering and post-production process was quite elaborate. We`re talking about Imax-quality images and no one there had this experience," she said.
University of NSW iCinema Centre director Jeffrey Shaw, a researcher in the interactive digital cinema field, worked alongside Ms Kenderdine to develop the project.
The virtual Hampi installation was launched globally in 2006, but it has never been to Australia. Soon it will arrive with added bells and whistles.
"We`ve reworked the platform into stereographics and there`s a new content and audio architecture," she said.
"This installation of Hampi is probably the second high-resolution stereographic panoramic capture of a World Heritage site."
She used the rare and expensive Swiss-made Seitz cameras to capture images on location at Hampi.
"Each one costs about $50,000 and Seitz lent us the camera," Ms Kenderdine said.