The technique of system simulation has gained wide acceptability during the last three decades and has become an important tool of the modern decision making science. The main reason for the fast development of this branch of decision science is the rapid growth of digital computers. At present, system simulation finds an important place in the manufacturing engineering and has been extensively employed as an aid, in analysis and optimization of manufacturing systems, design of new production facilities and layout generation for warehouses and distribution systems. Evaluating and selecting software packages that meet an organization's requirements is a difficult decision making process. Selection of a wrong software package can turn out to be costly and adversely affect business processes. The aim of this paper is to provide a basis to improve the process of evaluation and selection of the software packages, because there are a variety of simulation tools for manufacturing system. The current research will focus on the study and overview of the available simulation software and an attempt has been made to build some criteria for selecting simulation software for manufacturing system. The current approach when appropriately applied should result in more effective simulation software selection and application.