This paper involves Simulation and Animation of the greatest sea-to sea lock canal of ail time, and the epitome of engineering ingenuity and perseverance: Panama Canal. The emphasis is on application of simulation far transportation based operational problems. The project involves simulation of Panama Canal operations and then animating the results obtained from simulation. A GUI based software is developed. Coding far the simulation program is done in VC++, while coding far animation program is done in Java. The Java program takes output of simulation program as its input and produces animation. The software is user friendly and helps the user in understanding the results obtained in simulation by animating them.