A complete hardware and software railroad training system gives the trainee a hands-on operators experience in a safe and productive classroom environment. The system and method combines a complete virtual simulation of a yard and the associated equipment with a cost-effective Operator Control Unit (OCU) to fully address Remote Control Operation (RCO), including equipment handing, yard familiarization, rules and safety training. A simulated locomotive training system according to the invention comprises a computer system generating a display of an avatar in a simulated railroad environment including a virtual locomotive and associated equipment. The OCU, a hand-held unit in communication with the computer system, includes one or more video-game or "game-pad" type controls, enabling a user to manipulate the avatar in the simulated railroad environment. The controls may be joystick controllers, allowing a user to navigate, view and select objects and actions in the simulated railroad environment without the user's hands having to leave the OCU. Right and left controls, each operated by one finger on each of a user's hands, respectively direct the movement of the avatar in the simulated railroad environment and change the view of the avatar in the simulated railroad environment.