In this paper, we develop a force-reflection joystick system for VR-based simulation, including a 2-DOF joystick and the related software. The developed force-reflection joystick, as a kind of haptic device, provides two-way communication in both position and force, and is very helpful for the user to interact with a simulation system. By considering the main factors in designing a force-reflection joystick, we build the joystick to be with the bandwidth, precision, and output torque comparable to the advanced commercial joystick. We also perform workspace analysis, system identification, and system modeling to better connect the joystick with the simulation system. To make it suitable for various applications, the software is developed to generate virtual motion constraints, so that the joystick is confined to operate within the workspace that corresponds to task requirements. In other words, the joystick may behave like a manipulative device specific for the given task. For demonstration, in experiments, we use the developed joystick system to emulate a virtual manual gearshift system.