Modern hydrodynamic simulations of galaxy formation are able to predict accurately the rates and locations of the assembly of giant molecular clouds in early galaxies. These clouds could host star clusters with the masses and sizes of real globular clusters. I describe current state-of-the-art simulations aimed at understanding the origin of the cluster mass function and metallicity distribution. Metallicity bimodality of globular cluster systems appears to be a natural outcome of hierarchical formation and gradually declining fraction of cold gas in galaxies. Globular cluster formation was most prominent at redshifts z > 3, when massive star clusters may have contributed as much as 20% of all galactic star formation.