Background: One of the topics students have difficulties in understanding is electromagnetic induction. Active learning methods instead of traditional learning method may be able to help facilitate students' understanding such topics more effectively. Purpose: The study investigated the effectiveness of physical models and simulations on students' understanding daily life applications of electromagnetic induction. Sample: The nine participants in the study were voluntaries from the fourth year of the physics education undergraduate programme. Design and methods: Lessons were designed to enhance students' conceptual understanding of electromagnetic induction. Researchers developed multiple generator and simple electric motor models. These models and simulations about "Faraday's Law," "magnetic field," "magnets," "generator" and "radio waves" were used in lessons. The data were collected through open-ended questionnaire and semi-structured interview. Open-ended questionnaire was employed in a pre-test and a post-test. Students' answers were categorized as "sound understanding," "partial understanding," "misunderstanding" and "no understanding." At the end of the last lesson, the interview was implemented about the students' opinions related to application. Results: For each question, the number of responses matching the accepted scientific explanation increased after application. The number of illogical or incorrect responses decreased. Conclusions: Physical models and simulations used in the present study had positive effect on students participated in this study to understand electromagnetic induction and its daily life applications.