The exploration of lunar satellite, “No.l Chang e” is simulated with the orbit design by using Matlab GUI and virtual reality design tool. The scene can be chosen by selecting different observation angles. In the mean time, image capturing, processing and transmitting are also simulated. It is the long distance that signal has to pass thus suffers a tremendous attenuation during the deep space transmission. The image will get serious noise which makes the picture blurry. Therefore, we should take the link budget very carefully, including the influence of the atmosphere, to make sure that the image quality is acceptable. On the other hand, some image processing algorithms are also considered.