Systems and methods for dynamically testing product and process of production environment in virtual testing environment are disclosed. A testing system may retrieve production data related to each production activity corresponding to events executing in real-time. Each production activity is related to product and process of production environment. Further, testing system generates each scenario of production environment in virtual testing environment in real-time, based on sequencing of each event and creates, in the virtual testing environment, virtual process and virtual product corresponding to process and product of production environment, based on at least the events, generated scenarios, and historical data. Finally, testing system re-plays each production activity in virtual testing environment for testing virtual process and virtual product. The method may comprise testing using real-time scenarios of production environment, allowing a user to view testing process and perform selective actions while testing.