Recently, the integration of advanced simulation technologies with artificial intelligence (AI) is revolutionizing science and engineering research. ChronoLlama introduces a novel framework that customizes the open-source LLMs, specifically for code generation, paired with PyChrono for multi-physics simulations. This integration aims to automate and improve the creation of simulation scripts, thus enhancing model accuracy and efficiency. This combination harnesses the speed of AI-driven code generation with the reliability of physics-based simulations, providing a powerful tool for researchers and engineers. Empirical results indicate substantial enhancements in simulation setup speed, accuracy of the generated codes, and overall computational efficiency. ChronoLlama not only expedites the development and testing of multibody systems but also spearheads a scalable, AI-enhanced approach to managing intricate mechanical simulations. This pioneering integration of cutting-edge AI with traditional simulation platforms represents a significant leap forward in automating and optimizing design processes in engineering applications.