The study developed and evaluated a five-module simulation-based training program to improve the mental health literacy and clinical communication skills of junior dental students. Sixty students participated in a quasi-randomized controlled design with assessments at T0 (baseline), T1 (after module 3), T2 (after module 5) and T3 (1 month post-training) using the DANVA-2, MHL-Q, SEGUE, JSE-HP and CD-RISC-10 instruments. The intervention group completed the modules: VR scenario familiarization, stress regulation, simulation integration, standardized patient communication and reflexive reinforcement, while the control group had conventional teaching. At T3, the intervention group achieved significantly higher scores: DANVA-2 (66.1% vs. 66.2% ± 6.5%, Cohen's d = 2.31), MHL-Q (71.1 ± 4.8 vs. 60.8 ± 5.4, d = 2.05), SEGUE (80.9 ± 5.9 vs. 67.2 ± 67.2), CD-RISC-10 (28.4 ± 3.5 vs. 23.2 ± 3.7, d = 1.46), all p < 0.05. Emotional recognition (OR = 1.12, 95% CI: 1.06–1.18) and communication effectiveness (OR = 1.15, 95% CI: 1.09–1.21) independently predicted clinical integration. The training improved mental health literacy, communication skills and provided a psychological correlate with clinical and empirical resilience.