The characteristics of the virtual simulation coordinate measuring machine (CMM) system for engineering application are analyzed. By using virtual display technology, a simulation CMM was developed to avoid the damage of expensive equipment caused by maloperation and to reduce vast cost, which was also be able to apply to engineering practice. Technical difficulties of the simulation CMM system were introduced mainly, in which reality impression, excellent kinematics simulation effect were realized, with easy implementation, and interaction with coordinate measurement software of the CMM. The simulation CMM system is already applied successfully in practices in enterprises and training, teaching in engineering.