The simulation of target-scattered echo with the moving sonar platform and target in 3-dimensional ocean environment is essential to validate and evaluate the performance of a sonar system. This paper presents the improved target signal simulation on the basis of the highlight(HL) model and its realtime algorithm. In order to simulate the scattering highlight, the highlight is represented as a directional scatterer. The realtime generation algorithm of the target signal is realized by use of DSP chip, TMS320C40, where the 40 channels are equally separated to form a parallel processing task in 4 processors. The presented realtime-version of target signal simulation can be used as a target signal simulator in the development of ACM(Acoustic Counter Measure) and advanced sonar signal processing techniques.