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This paper presents a novel approach of developing a vision-based forward collision warning system (FCW) under a virtual and real-time driving environment. The proposed environment mainly includes a 3D high-fidelity virtual driving environment developed with computer graphics technologies, a virtual camera model and a real-time hardware-in-the-loop (HIL) system with a driver simulator. Some preliminary simulation has been conducted to verify that the proposed virtual environment along with the image generated by a virtual camera model is valid with sufficient fidelity, and the real-time HIL development system with driver in the loop is effective in the early design, test and verification of the FCW and other similar ADAS systems.