In this paper, we present an architecture of Ontology-based Distributed Simulation on Grid (ODSG) which facilitates life-cycle management of large-scale distributed interactive simulation on the Grid computing environment. The architecture aims at some further solved key technologies for M&S (Model and Simulation) and new simulation pattern on open, complex, large-scale distributed grid environment. We accomplished a novel well-defined multi-layered architecture, which consists of Grid Infrastructure layer, simulation grid middleware layer, ontology-based GUI layer, simulation application layer and users layer. Under the architecture of ODSG, Ontology-based simulation services integrate Ontology and grid technologies to provide a semantic heterogeneous solution to describe simulation resources in distributed simulation environment. ODSG surmounts inherent shortcomings of traditional HLA-based distributed simulation on dynamical share, dynamical discovery, autonomy, fault tolerant, task migration, collaboration capability and security mechanism.