WATCH: North Korea drops nuclear bomb on US city in chilling video simulation

Video has been released of North Korea celebrating its most important national holiday with a simulated missile strike on a US city.

WATCH: North Korea destroys US city in bizarre video simulation

WATCH: North Korea destroys US city in bizarre video simulation

The footage from Korean television shows leader Kim Jong-un watching proudly as video of a simulated missile strike on the US plays on a giant screen.

Members of the North Korean military applaud as an orchestra plays music to accompany the shocking video.

The scene was part of the celebrations for Day of the Sun which marks the anniversary of the birth of North Korean founder and former president Kim Il Sung.

The chilling footage reportedly played on a screen in the background of the celebration showed an intercontinental ballistic missile soaring across the Pacific Ocean - eventually crashing into US soil. The video cuts to an image of a tattered US flag surrounded by graves after the strike.

When the footage plays the crowd watching erupt in a roar.

Kim Jong-un was pictured cheering as the video simulation showed a US city being destroyed by a North Korea nuclear missile.

Members of North Korea's military helped celebrate the occasion. Source: Supplied

The video surfaced as tensions continue to rise between the US and North Korea.

North Korea has threatened "all out war" and earlier this week conducted a failed missile launch.

In defiance of United Nations sanctions, North Korea has conducted several missile and nuclear tests. They've also claimed they have developed a missile that is capable of striking US mainland.

Their latest missile test on Sunday failed a few seconds after launch.

North Korean leader Kim Jong-un waves during a military parade for the celebration. Source: AP

North Korean men and women wave flags and plastic flowers as a float with model missiles and rockets with words that read "For Peace and Stability in the World" is paraded across Kim Il Sung Square. Source: AP

North Korean women cry as they march past leader Kim Jong-un. Source: AP

Vice President Mike Pence said that the US’ recent strikes on Syria and Afghanistan was proof that President Trump’s resolve should not be tested.

This sentiment was echoed by Trump himself, who is reportedly considering “utterly destroying” North Korea’s nuclear sites.

"There are plans to destroy the missile sites and the military have strong confidence in what they know," a US official announced.

“They wouldn’t launch a pre-emptive strike if there is an underground nuclear explosion but they would if the president thought they were launching an intercontinental ballistic missile.”

Doubts have also been raised over the legitimacy of North Korea's weapons on display after experts began to notice anomalies in the missiles.

A senior analyst at the Korea Defence Network told AFP: “I suspect they all might be mock-ups aimed to impress the outside world.”

The nose cone of one of the devastating rockets pictured earlier this week “wobbled quite noticeably” according to Chad O’Carroll, managing director of specialist service NK News, who was also skeptical of the weapons.

A missile on display during a military parade in North Korea. Photo: AP

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