The deadliest nightclub fire in the history of Taiwan is used as the case study in this paper with the official fire investigation report to provide confirmation of the origin and the cause of fire, while research studies from Taiwan and around the world as well as results from the thermal analysis experiment on the soundproof foam provide the input data for the computer simulation. The latest Fire Dynamics Simulator (FDS) program is used to reconstruct the nightclub fire scene and to obtain the changes occurred in fire hazard factors such as visibility, carbon monoxide concentration and oxygen concentration. The causes and location of death for the nine victims are also analyzed to cross compare with the autopsy report. Finally, recommendations are made on the emergency egress time for entertainment establishments such as nightclubs based on the computer simulation and other literatures as reference for fire safety strategies for nightclubs.