This paper examines the development of simulation video using virtual reality technology to enhance students' understanding in Problem Solving & Program Design (DFC10042) course. This simulation video is captured by using 360 camera and edited using VR technology applications (Wonda VR) which is it provides a variety of interesting and easy features in exploring the simulation process. In the process of developing this application, the ADDIE model is used as a development methodology. This video shows a simulation of 3 scenarios in daily life. For each scenario, the Input, Process and Output (IPO) are clearly stated and detailed with descriptions and evaluation questions provided at the end of the video. The findings found that this simulation video gave a positive impact to students where more than 75% gave a score of 4 and 5 for a questionnaire, involved 114 respondents. Assessment scores involved the topic of problem solving techniques also increased by 65% compared to data for students who did not use simulation video. The intention for the development of simulation video are focusing to teaching aids that can help to improve students' understanding of problem solving and logical thinking in order to increased student?s ability to learn better. Extend from that, this method can be applied more widely by the students and lecturers whose involves in the teaching and learning of DFC10042 in Malaysia?s Polytechnic in general, which make the learning process more dynamic and interesting.