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This paper discusses recent developments and application of driving simulators. Simulation of driving via films has been used for a number of years as a driver education tool. More recently, interactive simulators have been developed for research and training applications. Improvements are accelerating due to a combination of ongoing research needs, and general state of the art advances in hardware and software technology. Modern simulator requirements are reviewed from the point of view of both driver characteristics (vision, audition, proprioception, vestibular motion sensation) and task demands (e.g., steering and speed control, risk perception, decision making, general workload level). A variety of simulator applications are summarized, including comparison with subsequent field tests. These applications include studies involving drunk driving and risk taking, reduced visibility and delineation, and signing.