The present invention provides an educational toy simulator which comprises a base member and a set of peg pieces. The base member is formed of multiple layers, and one or more cut outs are formed in the base member for receiving the corresponding peg piece. The cut outs and the peg pieces are formed with a contoured, stepped or tapered structure to prevent the peg pieces from coming in contact with the image display member. A slot is formed in the base member to slidably receive an image display member for displaying a picture through the cut outs. A depth of the peg pieces is smaller than a depth of the corresponding cut outs. Since the image display member is slidably received in the slot, the displayed pictures may be changed from time to time thus providing capabilities for introducing more vocabulary to a learner in a playful way.