Federated learning (FL) enables multiple client medical institutes collaboratively train a deep learning (DL) model with privacy protection. However, the performance of FL can be constrained by the limited availability of labeled data in small institutes and the heterogeneous (i.e., non-i.i.d.) data distribution across institutes. Though data augmentation has been a proven technique to boost the generalization capabilities of conventional centralized DL as a “free lunch”, its application in FL is largely underexplored. Notably, constrained by costly labeling, 3D medical segmentation generally relies on data augmentation. In this work, we aim to develop a vicinal feature-level data augmentation (VFDA) scheme to efficiently alleviate the local feature shift and facilitate collaborative training for privacy-aware FL segmentation. We take both the inner- and inter-institute divergence into consideration, without the need for cross …