Operation of a virtual vehicle in order to perform dynamic evaluation of the design can be achieved through the use of augmented reality combined with a simulator. Many uses of virtual reality involve the evaluation of component packaging in a static although interactive manner. That is, the virtual reality (VR) participant can interactively view the virtual environment and perform some minor interactions such as toggling through alternative CAD models for comparison or changing the viewing position to another seat. The immersive 3D simulator system described in this paper enables the VR participant to perform operational tasks such as driving, gunnery and surveillance. Furthermore, this system incorporates augmented reality in order to allow the mixture of the virtual environment with physical controls for operating the virtual vehicle.