This paper will discuss and review the nature of simulation interoperability. It will analyse the scope of interoperability in terms of basic intercommunication features (technical interoperability), fitness for purpose (functional interoperability) and suitability for use in distributed training (training interoperability). Only technical interoperability has received close attention, through DIS and HLA standards. Other aspects still present many challenges. The ability to create a common ‘outside world’ database is frequently cited as the dominant component and principal challenge in any discussion of interoperability. While this is often true, this paper identifies how interactions among all participants in the shared operational space (‘battlespace’) should be the starting point in defining interoperability, these interactions of course being dictated by the training requirement. Interactions are accomplished through ‘sensors’, which could be the human eye, night vision goggles (NVGs), radios, data links, radar, FLIR etc. Comprehensive interoperability demands comparable levels of modelling among all participants, including the effect of the environment (whether terrain or meteorology) on the performance of each simulator’s sensor suite. The paper will identify these significant effects and discuss where simulation technology is challenged and needs to advance, particularly in the context of mission simulation of future joint (Air/Land/Maritime) operations. The paper concludes with some discussion of the way ahead, including how guidelines based on experience could augment the use of standards.