Due to the numerous terrorist attacks that have occurred in Israel during the last five years there are many people suffering from PTSD who are seeking therapeutic help. Previous studies support the role of virtual reality (VR) as an effective tool for the treatment of PTSD. This chapter describes the development of a VR environment for the treatment of PTSD for people who were traumatized by suicide bus bombings in Israel. We present an overview of the simulation software and the study design including the clinical protocol and outcome measures. Included in these measures is the client's occupational performance which, to date, has received less attention by those investigating PTSD.