In this study the research is focused on modeling and implementation of virtual network laboratory based on virtualization technology. This work is motivated with the growing development of ICT technologies, the rapid growth of Internet users and importance of ICT infrastructure and TCP/IP networks in this development. Virtual network laboratory with remote access presented in this manuscript, called VNLab (Virtual Network Laboratory) is the result of a research in modeling the effective, low-cost, reliable and flexible environment for usage in teaching and learning networking concepts and TCP/IP networks. VNLab also represents an on-line educational system for engineering education in the fields of Computer Science and Information Technology that distributes learning materials and resources through network infrastructure. This environment is used since 2007 in Computer Network course. In this manuscript the VNLab architecture, its hardware and software components and network scenarios for laboratory exercises are presented. The methods for laboratory evaluation and experience with laboratory usage are presented as well.