We describe an approach of using the multi-agent animation method for traffic simulations. The presented simulation system uses an individual-based agent behaviour model and discrete cell-based roadway configurations. The behaviour model defines the driving characteristics of each vehicle agent in a simulated traffic network, and the cell-based configurations allow real-time dynamic path planning and efficient traffic flow simulations. By incorporating the advantages of discrete cellular automation algorithms and the continuous model of fluid dynamics, our 3D virtual reality traffic simulation system achieves realistic and accurate simulations in virtual environments