A zero-dimensional direct simulation Monte Carlo(DSMC) model is developed for simulating diatomic gas including vibrational kinetics. The method is applied to the simulation of two systems: vibrational relaxation of a simple harmonic oscillator and translational-rotational-vibrational energy exchange process under heating and cooling. In the present DSMC method, the variable hard sphere molecular model and no time counter technique are used to simulate the molecular collision kinetics. For simulation of diatomic gas flows, the Borgnakke-Larsen phenomenological model is adopted to redistribute the translational and internal energies.