The essential role of robot simulation for industrial robots, in particular the collaborative robots is presented in this chapter. We begin by discussing the robot utilization in the industry which includes mobile robots, arm robots, and humanoid robots. The author emphasizes the application of collaborative robots in regard to industry revolution 4.0. Then, we present how the collaborative robot utilization in the industry can be achieved through computer simulation by means of virtual robots in simulated environments. The robot simulation presented here is based on open dynamic engine (ODE) using anyKode Marilou. The author surveys on the use of dynamic simulations in application of collaborative robots toward industry 4.0. Due to the challenging problems which related to humanoid robots for collaborative robots and behavior in human-robot collaboration, the use of robot simulation may open the opportunities in collaborative robotic research in the context of industry 4.0. As developing a real collaborative robot is still expensive and time-consuming, while accessing commercial collaborative robots is relatively limited; thus, the development of robot simulation can be an option for collaborative robotic research and education purposes.