A virtual scale model operating environment for controlling operational scale models. The virtual scale model operating environment includes a virtual controller that provides simulated environmental parameters normally associated with real operation. The virtual controller can display a simulated measure of the simulated environmental parameters to a user. Control of the operational scale model by a user is altered by the virtual controller in response to the simulated environmental parameters. The simulated environmental parameters vary due to various factors including the operation of the scale model by a user in order to provide more realistic play. The virtual controller further provides sound effects and phrases from a virtual voice through its own speakers or through headphones. The virtual controller has a microcontroller executing software algorithms to provide the simulated environmental parameters and alter actual control of the operational scale model. The virtual scale model operating environment optionally includes a virtual scale model stage depicting a scene ordinarily associated with real-life operation which may include props to set, reset, or adjust the simulated environmental parameters. In the exemplary preferred embodiment, the virtual environment is an automobile race where the virtual controller controls an scale model race car with simulated environmental parameters including fuel tank level, tire conditions, engine temperature and a race track pit as the virtual scale model stage with props including a fuel pump with fuel nozzle, an air compressor with air wrench, and an engine tuner with timing light.