With the inclusion of the effects from wheels rotation, vehicle wading phenomenon was simulated using computational fluid dynamics tools and compared with road wading test. The new method utilizing the volume of fluid model to simulate the two-phase (water and air) flow when vehicle wades, Reynolds-Averaging Navier–Stokes simulation with both Realizable and shear stress transport turbulent models were conducted and the results indicated that the essential features of vehicle wading phenomenon were captured accurately. A relatively better correlation is achieved between computational fluid dynamics analysis and road test when shear stress transport turbulent model was utilized compared to using Realizable turbulent model. With the addition of the wheel rotation effects in vehicle wading simulation, the potential risks of water intrusion into the critical chassis and electronic components can be early detected and the frequent late design changes can be avoided. The new approach adopted in this study with VOF model and RANS simulation with SST turbulent model has shown that the benefits of shorter vehicle development cycles and parts warranty cost reduction. Thus, the results from computational fluid dynamics simulation with wheel rotation effects included can serve as the design guidance for any future vehicle wading developments.