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The number of relationships between important concepts is higher in physics courses than in other courses. As well as the definitions of complicated concepts, the feature of concepts should be learned. Using traditional instructional methods are sometimes not enough to teach physics concepts like velocity and displacement. Based on implications in the literature, Computer Simulated Experiment (CSE) seems to be a satisfactory approach that can be used to promote students' science achievement, and it is important to test how successful it will be when compared to Hands on Laboratory (HOL) study. Purpose of Study: The main purpose of this study was to investigate the effectiveness of CSE over HOL study on the understanding of velocity and displacement concepts when both teaching methods were used as a supplement to regular classroom instruction. The second purpose was to identify whether logical thinking ability accounted for a significant portion of variation in achievement related to velocity and displacement concepts. Methods: In this study, the pretest/post-test control group design was used. Each treatment (CSE & HOL) was randomly assigned to the experiment group and the control group. Both groups were administered a pretest of Velocity and Displacement Concepts Achievement Test (VDCAT) and a Logical Thinking Ability Test as dependent variables. Then, both groups were post-tested with the same VDCAT. The sample of the present study consisted of 61 tenth grade students enrolled in two physics classes of the same teacher in a high school. Findings and Results: Post-test scores revealed that a significant difference was obtained between the mean scores attained by the CSE group and hands-on group with respect to physics achievement. The CSE group scored significantly higher than the hands-on group with respect to achievement in physics related to velocity and displacement concepts. On the other hand, logical thinking ability accounted for a significant portion of variance in physics achievement. Conclusions and Recommendations: Computer-simulated laboratory experiments, together with classroom instruction, appear to be a practical strategy in implementing a physics program. They can be organized such that the application of physics concepts is stressed. This approach will improve understanding of physics subject matter. Well-designed computer simulations can be used for teaching some concepts without extra effort and time from the teacher to prepare materials.