This textbook provides a comprehensive introduction to the simulation of stochastic systems. Over 400 pages, the reader is introduced to stochastic simulation models, solution methods, and statistical analysis techniques. The fundamental concepts are thoroughly motivated and justified. The book can be used in undergraduate and graduate programs at universities and colleges. Its subject matter and approach make it appealing to economists, as well as engineers, mathematicians, and natural scientists. A basic understanding of probability theory and elementary statistics is assumed; the necessary elements are provided in the appendix. The book is presented in a coherent manner. It facilitates learning by example and learning by doing, and can be used for self-study. Each new concept is introduced clearly and understandably.