Clinical simulation is increasingly used in the education and training of healthcare professionals. Such professionals include physicians, nurses, respiratory therapists, and paramedics. Nurse educators must employ evidence-based practices to ensure high-quality clinical training for nursing students. The purpose of the current review attempted to compile the available research evidence on using and effectiveness of simulation for nursing students. The relevant literature was extracted by searching electronic databases (MEDLINE, PsycINFO, and CINAHL) and hand-checking reference lists of past similar reviews. The search strategy revealed 1544 records. After removing duplicates and screening the titles and content of the abstract, the total number of articles was 19. This article advocates using simulation as a teaching strategy in undergraduate psychiatric nursing education. The review discussed the benefits and ways of enhancing simulation use in the psychiatric nursing specialty.