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Background: Simulation is an education pedagogy that has been used for decades in many healthcare and non-healthcare professions. Psychological safety in simulation is a concept not unique to health care and recent literature has identified the significance that this concept plays to education and learning. Psychological safety mitigates feelings of anxiety, promotes critical thinking and problem solving and encourages speaking up and asking questions without fear of retribution or embarrassment. Few articles explore the nature of psychological safety from the learners’ perception. Purpose: The purpose of this qualitative interpretive description study was to explore the perceptions of psychological safety in simulation among undergraduate nursing students and facilitators. Methods: Seven undergraduate nursing students and four simulation facilitators were interviewed using a semi-structured interview guide and all interviews were digitally recorded. The digital recordings were transcribed verbatim and used in conjunction with reflexive journaling as supplemental data to assist in interpreting participants’ perspectives of psychological safety in simulation. The analysis utilized was a continuous and iterative process using axial coding, inductive analysis and constant comparative methods. Results: Two themes emerged from the student interviews: dynamic interactions and self-efficacy. Whereas, the two themes from the facilitator interviews were simulation design and trust. Conclusions: The knowledge generated from this study will support simulation educators in creating and maintaining a psychologically safe learning environment. This study intended to advance nursing science by filling the gap in the empirical literature on undergraduate nursing students’ and facilitators’ perspectives on psychological safety in simulation.