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This qualitative study examines how online simulations support teacher candidates in addressing politicized and identity-based classroom issues. Four teacher educators from a public university in the southwestern U.S. shared their experiences implementing simulations focused on banned books and religious diversity in undergraduate literacy courses. Thematic analysis revealed that simulations served as third spaces for ethical rehearsal, encouraged equity-focused decision-making, exposed the influence of context, and benefited from repetition. Faculty emphasized the need for instructional scaffolds and reflective tools. Findings position simulations not only as instructional technologies but as critical platforms for developing self-efficacy, professional identity, and justice-oriented teaching. The study offers insights for integrating simulations into teacher education and informs future research on equity in learning environments.