We used a driving simulator to investigate landmark-based route navigation in young adults. Previous research has examined how proximal and distal landmarks influence route navigation, however, these effects have not been extensively tested in ecologically-relevant settings. We used a virtual town in which participants learned various routes while simultaneously driving. We first examined the effect of four different landmark conditions on navigation performance, such that each driver experienced one of four versions of the town with either proximal landmarks only, distal landmarks only, both proximal and distal landmarks, or no landmarks. Drivers were given real-time navigation directions along a route to a target destination, and were then tested on their ability to navigate to the same destination without directions. We found that the presence of proximal landmarks significantly improved route navigation. We then examined the effect of prior exposure to proximal vs. distal landmarks by testing the same drivers in the same environment they previously encountered, but with the landmarks removed. In this case, we found that prior exposure to distal landmarks significantly improved route navigation. The present results are in line with existing research on route navigation and landmarks, suggesting that these findings can be extended to ecologically-relevant settings.