The administration of medications is practiced by undergraduate nursing students in health care facilities throughout the nation during their clinical placements. It is a skill that demands safe performance with appropriate supervision. Students need to be prepared for this skill so that they can administer medications safely in the real clinical setting. Objectives: This paper reports and demonstrates an innovative and unique simulation strategy to teach medication safety to nursing students. The simulation technique arose in response to a study which examined the experiences of undergraduate nursing students when administering medications in the clinical setting. Method: A grounded theory approach with constant comparative analysis informed the development of an explanatory substantive theory about the challenges students face when administering medications in the clinical setting. A sample of 28 final year undergraduate nursing students from a regional university provided data in order for theory development. Results: This study identified supervision as a central issue for students which ultimately influenced their decision making at the time of administering. Supervision levels were identified as ranging from the registered nurse being close and personal to being absent. These levels were reported as shifting and were identified as important towards patient safety. Recommendations from this study indicated that students need to be prepared for the realities that they face in the clinical setting when administering medications and thus their on campus learning needs to be realistic. The simulation technique using latex as an innovation, has given students the opportunity to experience reality.