Variable Message System (VMS) with LED as light source has been widely used on highway throughout Taiwan. Although it can provide better visual display, various design parameters and environments may influence drivers’ recognition of information and therefore, are worth investigations. The research was conducted using lab simulation to see if the drivers could recognize the information displayed on the VMS under various environmental conditions, such as raining, sunset, and fog, etc., as well as with various design parameters, such as Chinese font type, resolution, color of background, and space between texts etc. Both young subjects and the elderly were requested to participate in the test and the differences were compared. The results show that the Chinese font “Zhong-Yuan” and “Zhong-Hei” were more easily recognized by the young subjects while for the elderly it was “Zhong-Yuan” and “Zhong-Kai”. The results also show that larger text spacing or row spacing could enhance the recognition, and the white background was better than the black one. As for the recognition of VMS between two subject groups, significant differences were observed. The size of the information to be well recognized by the elderly are nearly double the size of that for the young subjects.