As simulation has become an integral part of the overall life-cycle support of aircraft, the need for effective Virtual Engineering (VE) tools to support these activities has increased. FLIGHTLAB is a state-of-the-art, aircraft modelling and simulation software tool, that has been designed to address this need and is widely used in rotorcraft design, analysis, test and evaluation, and full-flight simulation applications. This VE tool supports the development and analysis of both fixed and rotary wing aircraft with an extensive library of modelling components which have been successfully used and validated in numerous, real-world applications. These components provide comprehensive modelling of aerodynamic, structural, control and propulsion disciplines. Analyses include performance, dynamic response, stability and control, airloads, and structural loads. Graphical User Interfaces and an interactive scripting language provide user-friendly operation. This paper describes the capabilities and validation activities that have been undertaken to support the development of the commercial VE toolset FLIGHTLAB over the last 20 years and discusses future rotorcraft challenges that could be addressed by enhancements to current generation VE tools.