Movie special effects technology is mainly composed of three categories: live action special effects, computer-generated special effects and hybrid special effects. This paper mainly analyzes the development of movie special effects technology from the aspect of computer-generated special effects, combined with Adobe After Effects video editing software. Combined with the common visual special effects technology in modern movies, and the changes in the production method of modern movie special effects, this paper proposes the use of virtual simulation technology, including texture mapping technology, virtual reality technology, etc. to design a movie animation special effects system based on three-dimensional virtual technology. The wavelet decomposition is used to process the three-dimensional image, extract the image edge information, use virtual reality technology to obtain the a priori knowledge points of the image, obtain the minimum recognition distance of the scene picture, improve the overall signal-to-noise ratio of the image, and realize the surface reconstruction of the three-dimensional scene image. The virtual scene generated by the movie animation special effects system is compared with the real phenomenon, demonstrating that the virtual generation effect of the multi-factor scene is closer to the real effect. Among them, 34 volunteers think that the movie animation special effects system in this paper has more excellent stability, which indicates that the movie animation special effects system based on 3D virtual technology can be practically applied.