Helping learners to visualize the structures and dynamics of particles through the use of technology is challenging. Animations and simulations can be difficult for learners to interpret and can even lead to new misconceptions. A systematic approach to development based on the findings of cognitive science was used to design, develop, and evaluate a simulation of physical equilibrium that addresses learner needs and misconceptions. Findings from a research study involving 45 chemistry instructors and 94 students were used to design and develop a dynamic computer simulation of liquid-vapor equilibrium that can be viewed at both macroscopic and submicroscopic levels. In the first stage of the process, mental models of the instructors and students were elicited by an open-ended questionnaire. Next, a selected group of participants were interviewed while viewing two dynamic animations of physical equilibrium. Based on these research findings, a dynamic simulation of liquid-vapor equilibrium was designed and developed. The simulation underwent several evaluation and revision steps that involved both experts and students. The final version of the simulation was implemented with a new group of 191 students. It was found to be effective in improving students' understanding of dynamic equilibrium and was well received by them.