A system and method for large scale distributed simulation for realistic multiple-agent interactive environments are disclosed. A particular embodiment includes: generating a vicinal scenario for each simulated vehicle in an iteration of a simulation, the vicinal scenarios corresponding to different locations, traffic patterns, or environmental conditions being simulated; assigning a processing task to at least one of a plurality of distributed computing devices to generate vehicle trajectories for each of a plurality of simulated vehicles of the simulation based on the vicinal scenario; and updating a state and trajectory of each of the plurality of simulated vehicles based on processed data received from the plurality of distributed computing devices.