Over the past two decades, computer aided engineering (CAE) processes and procedures became an integral part of the product development cycle. Virtual product development (VPD) refers to procedures that integrate the CAE tools in a unified approach that spans all the product development phases. Current industrial trends utilize VPD tools and procedures to reduce the product development time without jeopardizing the product quality. These trends led to an increasing demand for engineers with computer skills, multidisciplinary engineering knowledge, and acquaintance with VPD tools. ABET program outcomes emphasize providing courses with an accumulated background of curricular components to solve realistic open-ended engineering problems. Capstone design project (CDP) course has been regarded as important learning activity that could be designed to provide senior engineering student an opportunity to solve such problems. A major objective of the CDP course is to simulate industrial setting and allow students to experience real-life engineering practice. This paper presents an implementation of the VPD procedures in a mechanical engineering CDP course. This integration simulates the industrial environment through multidisciplinary teams working together in subsystems to produce one product using standard commercial VPD tools. This course implementation is demonstrated using a case study of teams working to design and build a solar car.