This paper presents a taxonomy of agents’ embodiment in physical and virtual environments. It categorizes embodiment based on five entities: the agent being embodied, the possible mediator of the embodiment, the environment in which sensing and acting take place, the degree of body, and the intertwining of body, mind, and environment. The taxonomy is applied to a wide range of embodiment of humans, artifacts, and programs, including recent technological and scientific innovations related to virtual reality, augmented reality, telepresence, the metaverse, digital twins, and large language models. The presented taxonomy is a powerful tool to analyze, clarify, and compare complex cases of embodiment. For example, it makes the choice between a dualistic and non-dualistic perspective of an agent’s embodiment explicit and clear. The taxonomy also aided us to formulate the term “embodiment by proxy” to denote how seemingly non-embodied agents may affect the world by using humans as “extended arms”. We also introduce the concept “off-line embodiment” to describe large language models’ ability to create an illusion of human perception.