We report a novel illusory distortion of the visual scene, which became apparent during both: (i) observer rotation inside a furnished stationary room; and (ii) room rotation about the stationary observer. While this distortion had several manifestations, the most common experience was that scenery near fixation appeared to sometimes lead and other times lag more peripheral scenery. Across a series of experiments, we eliminated explanations based on eye-movements, distance misperception, peripheral aliasing, differential motion sensitivity and adaptation. We found that these illusory scene distortions occurred only when the observer perceived (real or illusory) changes in self-tilt and maintained a stable fixation.