A dynamic target simulation system design is described which uses the real world as background scene. An instructor driven threat scenario is projected on a beamsplitter combiner. A collimating lens system makes the target appear as part of the real world viewed through the beamsplitter. High resolution target signatures are obtained by shrinking 525 raster lines down to a minimum area. A 360 degree visual hemisphere is provided by synchronization of gunner's line of sight and location of the simulated target in space. The gunner's line of sight is fed to the microcomputer control via an electromagnetic sensor. An occultation system is provided for the target to disappear as it moves behind trees or mountains. Scoring capability is also provided, and events may be stored and played back for training/review at a later date. Since the system is portable and relatively inexpensive, it will readily lend itself as a visual target simulator for outdoor field training in antiarmor (e.g., DRAGON and TOW) and air defense weapons (e.g., STINGER and CHAPARRAL).