Lunar rover development involves a large amount of validation works in realistic operational conditions, including its mechanical subsystem and on-board software. Real tests require equipped rover platform and a realistic terrain. It is very time consuming and high cost. To improve the development efficiency, a rover simulation environment called RSVE that affords real time capabilities with high fidelity has been developed. It uses fractional Brown motion (fBm) technique and statistical properties to generate lunar surface. Thus, various terrain models for simulation can be generated through changing several parameters. To simulate lunar rover evolving on natural and unstructured surface with high realism, the whole dynamics of the multi-body systems and complex interactions with soft ground is integrated in this environment. An example for path planning algorithm and controlling algorithm testing in this environment is tested. This simulation environment runs on PC or Silicon Graphics.