Applying a second‐order fully nonlinear numerical scheme, we have investigated the characteristics of reflection and transmission of atmospheric gravity wave packets in a vertically sheared horizontal wind. When the leading edge of incident wave arrives at the reflecting level predicted by the linear theory, the wave reflection begins to occur. In the reflection process, the reflection and incident waves are superposed with obvious phase staggering, which is different from the wave reflection in a meridionally sheared horizontal wind. In the evanescent region, the wave phase has only weak variation; the wave amplitude decays with the sheared wind growth and vice versa, which is in good agreement with the evanescent wave configuration predicted by the linear theory. Some spectral components of the incident wave can penetrate through the evanescent region and produce a transmitted wave. Both the reflection and transmission coefficients slightly decrease with the moderate increase of the initial amplitude of the incident wave, which is because a large‐amplitude wave can induce a strong mean flow; moreover, the wave‐induced mean flow plays a more significant role in transferring the energy from the waves to the background flow than in enhancing the transmission of the waves. This is distinguished from the wave reflection in a sheared flow under the wave propagation distance smaller than the density scale height, in which the mean flow induced by a larger‐amplitude wave significantly strengthens the transmission of the wave. The simulation shows that the reflection loop predicted by the linear theory is not a common phenomenon in the wave reflection. Several groups of simulated cases indicate that the reflection and transmission coefficients depend on not only the amplitude, frequency, and wavenumbers of the incident wave but also the strength and thickness of the evanescent region. The reflection coefficient increases but the transmission coefficient decreases with the relative evanescent thickness growth, and once the strength and thickness of the evanescent region are large enough, the wave hardly penetrates through the sheared wind zone, and the reflection coefficient approaches a constant value, too. Except for the disappearance of the evanescent region, the total sum of the reflection and transmission coefficients of the wave pseudoenergy flux is slightly <1 because of the interaction between the wave and flow. These results suggest that the effects of wave reflection and transmission should be correctly included in the parameterization of gravity waves to attain more realistic middle atmospheric climatology from general circulation models.