Methods and systems for skills-based testing and training of an application are provided. Example embodiments provide a Skills-Based Simulation and Measurement System "SBSMS", which enables publishers and authors of tests and training programs to provide simulated application environments for testing and training students. In one embodiment, the SBSMS comprises a client portion and a server portion. The client portion includes a simulation engine that is run by a student and tracks the student's responses. The server portion comprises the components and data that are used to implement the client-side simulation engine and includes a skills-based testing and training engine, simulation components, non-simulation components, and a tests and training scenarios and student data repository. The server portion receives and satisfies requests for portions of a scenario with the simulation and non-simulation components. The server portion engine receives from the client portion student responses and scores and stores them on a per user, per scenario basis in the data repository. The client and server portions cooperate to provide skills-based simulation and measurement in testing and training scenarios.