Based on the study of Digital Elevation Simplification Model and fractal theory, this paper put forward a new method to simulate complex terrain. That use simplified DEM data to construct terrain frame based on the quad tree at first, and then use fractal to generate the details of every node of the tree. In the process of construction, the LOD theory is used to simplify the terrain and get its typical data. According to the change of view position and direction, the paper gives a new way to judge the visibility of the surface patch. Experimental results show that this algorithm is simple, efficient and supports the real time dynamic simulation of terrain model.