This chapter examines the application of virtual reality technology in “Vehicle Automatic Transmission Technology” experimental course and puts forward the building methods of virtual simulation experiment system on parallel shaft automatic transmission (PSAT). This chapter mainly describes the overall modeling idea, the construction of laboratory scene, determination of disassembly sequence by hierarchical assembly tree method, interaction design, and so on. The system has successfully implemented four functions, which are self-learning video, automatic operation demonstration, manual operation interaction, and theoretical and practical testing. The virtual reality system of the PSAT is applied in the course for majors of vehicle engineering and automotive service engineering. Compared to the classes that did not use the system, the average grades of the class who used increased by 2.4%, and the average amount of time spent on manual operations decreased by 13.3%, which significantly enhances the teaching effect.