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Simulation is a powerful tool for the analysis of new system designs, retrofits to existing systems and proposed changes to operating rules. In this paper we limit our discussion to parallel and distributed simulation (PDS). In order to simulate large-scale complex systems with better consistency, further more as fast as possible, the universally adoptive approach of PDS is that make the execution of simulation programs on multiprocessor and distributed computing platforms. Time management algorithm is one of the key techniques in the parallel and distributed system simulation, which broadly fall into conservative and optimistic synchronization. A survey of both the two algorithms is presented focusing on fundamental principles and mechanisms. The remainder of this paper is focused on one of the novel rollback algorithm; we call it as smart rollback algorithm. And then, we provide and describe the novel rollback algorithm in optimistic time management in detail, including scheduler’s priority queue, rollback manager, cancellation strategies, and roll forward operation. Among this paper, central issues concern the synchronization of computations on different processors. Finally, we discuss how to get the relatively minimal rollback, and how to realize the dynamic allocation and reclamation.