Background Student engagement can predict successful learning outcomes and academic development. Expansion of simulation-based medical education will bring about challenges to educators and require them to help medical students to engage themselves in a simulation-based learning environment. Methods We conducted semi-structured interviews with ten medical students to explore their learning types and characteristics in the simulation-based learning environment. The interpretative phenomenological methods were used to analyze the data. Results The interviews were thematically analyzed to form three types of student engagement in the simulation-based learning environment: reflective engagement, performance engagement, and interactive engagement. The analysis also identified eight sub-themes: active, persistent, and focused thinking engagement; problem-oriented thinking engagement; active “voice” in class; strong emotional experience and disclosure; demonstration of professional leadership; interaction with realistic learning situations; support from teammates; and friendship-like lecturer-student interaction.Conclusions The findings explain the mechanisms behind student engagement in the simulation-based learning environment from two perspectives: the two-way construction of individuality and space in learning along with the interdependence of the learner and the learning community. That is, expanding the learning space centering around “inquiry” helps strengthen reflective communication and dialogue. It also facilitates imagination, stimulates empathy, and builds an inter-professional learning community. In this way, medical students are expected to learn from the two-way transmission of information, cultivate and reshape the interpersonal relationship, so as to improve engagement in the simulation-based learning environment.