Presented in this paper is a state-of-the-art review of VM(Virtual Manufacturing). To survive on a global competition, manufacturers must shorten the time to market for their products. To achieve this goal, many manufacturers have implmented CIM systems. VM is a new direction in the CIM system development having emphasis on enhancing the decision-making capability. VM can be defined an integrated, synthetic manufacturing environment exercised to enhance all levels of decision and control. Also, VM is the use of computer models and simulations of manufacturing processes to aid in the design and production of manufactured products. Currently, VP(Virtual Prototyping) and VF(Virtual Factory) are main theme to develop a VM. In this paper, the concept and current status of VP and VF are explained.