The website mocks the 2016 presidential candidate, depicting him as a Prisoner of Wharton, which is the University of Pennsylvania's acclaimed business school where he received his degree in 1968.
In the video, the Funny or Die narrator sarcastically ties Trump's college experience at Wharton Business School to the Vietnam war.
"It was at Wharton where Donald suffered the day-to-day torture of campus life of at an Ivy league school," the narrator said in the video. "Trump was forced to stay on his college campus to slog through the swampy minefield of hotel slash resort management."
The video comes after the billionaire real estate, speaking at the Family Leadership Summit in Ames, Iowa this past weekend, said McCain was not a war hero because he was captured.
"He is not a war hero," Trump told pollster Frank Luntz, who was hosting the session.
"He is a war hero," Luntz responded.
"He is a war hero because he was captured," Trump said. "I like people that weren't captured, OK? I hate to tell you. He is a war hero because he was captured. OK, you can have -- I believe perhaps he is a war hero."
Later in the afternoon, Trump was walking back from his comments, tweeting, "captured or not, all our soldiers are heroes!"
In his first response, McCain said Trump should not apologize to him, but should instead apologize to the veterans captured in war.
He also spoke out Thursday about the Funny or Die video, writing, "Turns out Donald Trump was a POW too!" on Twitter.
Trump, who is known for using his Twitter account to tweet stories and other related media about him, has not acknowledged the video yet.