Sand simulation is very important aspect of computer graphics when it comes to performing real-time simulations. Sand simulation follows the rules of fluids but there are other approaches that can achieve similar results for virtual reality environment. An interesting application of sand simulation is for archaeological excavation. The aim of this project is to implement a realistic excavation simulation that can be used for underwater excavation in virtual reality environments. Implementation should be done in a game engine (i.e. Unity). The application should run on immersive VR head-mounted displays (i.e. HTC VIVE) and should have the form of a serious game.