Virtualized traffic via various simulation models and real‐world traffic data are promising approaches to reconstruct detailed traffic flows. A variety of applications can benefit from the virtual traffic, including, but not limited to, video games, virtual reality, traffic engineering and autonomous driving. In this survey, we provide a comprehensive review on the state‐of‐the‐art techniques for traffic simulation and animation. We start with a discussion on three classes of traffic simulation models applied at different levels of detail. Then, we introduce various data‐driven animation techniques, including existing data collection methods, and the validation and evaluation of simulated traffic flows. Next, we discuss how traffic simulations can benefit the training and testing of autonomous vehicles. Finally, we discuss the current states of traffic simulation and animation and suggest future research directions. Virtualized traffic via various simulation models and real‐world traffic data are promising approaches to reconstruct detailed traffic flows. A variety of applications can benefit from the virtual traffic, including, but not limited to, video games, virtual reality, traffic engineering and autonomous driving. In this survey, we provide a comprehensive review on the state‐of‐the‐art techniques for traffic simulation and animation. We start with a discussion on three classes of traffic simulation models applied at different levels of detail. Then, we introduce various data‐driven animation techniques, including existing data collection methods, and the validation and evaluation of simulated traffic flows. Next, we discuss how traffic simulations can benefit the training and testing of autonomous vehicles.