Medical simulation is a concept of training where the artificial clinical scenario is created in a safe and controlled environment using the adequate equipment. Simulation as a term comes from aviation industry, and it found its way in medicine back in the early 70s through the anaesthesiology field. With technology advancement and a merger with simulation concept, various high-fidelity models were developed that brought realistic experience in the training comparable to that of a real life patient. Development of medical simulation as a discipline begun mostly because of the need for patient and trainee safety during the learning process of the unskilled doctors. New and sophisticated equipment present in the modern clinical environment demands practical experience and adequate learning curve which is not usually possible to achieve in the work overloaded departments. That represents the problem for the physicians’ capacity to master the new technology and develop the skills at their own individual pace. In reflection to that, various training facilities started to develop, ranging from the simple skill labs to the high fidelity simulation centres which are intended to replicate the real clinical scenarios in all aspects. Training methods started to develop that are tailor made for the participants in regard to their skill level, expertise and competencies. From the basic skill trainers to the modern surgical and virtual reality simulators capable of reconstructing various clinical scenarios. On the global scale, societies for the simulation in healthcare have started to define the guidelines and recommendations for the simulation centre development and the teaching process itself. In the simulation environment, participants learn by doing and by total immersion in the experience with scenarios adjusted to their level of knowledge and with constructive feedback they get all the way. All the legal and technical issues that are tied to traditional learning model based on the real patient are limiting the education of the young doctors. That highlights medical simulation as a way of learning that will become integral part of medical curriculums in the near future and the real necessity. This review work will show the development, purpose, place and key concepts of medical simulation in healthcare education. The ultimate goal of medical simulations is to create environments that will resemble as much as possible those where work with the real patients is being done.