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Simulation video games (SVGs) are extremely wide category of modern video games, which provide innovative educational possibilities for personal and professional development. SVGs represent practically all forms of human activities, which in turn may raise sophisticated ethical issues. In terms of methodology, most of the educational vehicle SVGs can be studied within the framework of ludology. The typological features of hybrid social SVGs can be investigated by means of narratological methodology and non-reductionist approach (I. Bogost). It is possible to identify two problematic ethical aspects of SVGs: “internal” and “external”. The “internal” aspect investigates ethical issues within the virtual worlds of SVGs. The “external” aspect focuses on the problem the use of SVGs experience for the violation of moral and legal norms in society. The main objective of the paper is to identify key educational possibilities of SVGs and reveal their ethical dimension. Civil vehicle SVGs (car, bus, truck, train, racing games) provide outstanding educational possibilities for training driver skills, but may provoke traffic offense. Flight SVGs allow training pilots of civil airlines, but can be used by terrorists. Military aviation, tank, navy and submarine SVGs train combat vehicles control and raise ethical issues of violence against virtual/real civilians. Sports SVGs allow skills training and actualize the problem of cheating/doping. More complicated social SVGs represent the models of social behaviour as well as the problems of deviant behavior and virtual harassment. Business simulators are relevant in the context of gamification, but raise the ethical issues of capitalist exploitation. Medical SVGs can help to rehearse a surgical operation and at the same time represent medical errors. Educational combat SVGs actualize the problems of the virtual violence and its influence on social behavior. Construction and management SVGs raise moral dilemmas in city management (“SimCity”). Government SVGs besides the educational aspects of public administration may represent the violation of legal norms. God games actualize the problems of moral choices in the discourse of religious ethics. The findings of the paper can be useful for the study of game based learning and modern ethical research. © The Authors, 2019. All Rights Reserved.