The paper presents development of a Hardware-In-the-Loop simulation (HILS) system for the purpose of testing performance, stability, and reliability of an electronic power steering system(EPS). In order to realistically test an EPS by the proposed HILS apparatus, a simulated uniaxial dynamic rack force is applied physically to the EPS hardware by a pnumatic actuator. An EPS hardware is composed of steering wheel &column, a rack & pinion mechanism, andas motor-driven power steering system. A command signal for a pneumatic rack-force actuator is generated from the vehicle handling lumped parameter dynamic model 9software) that is simulated in real time by using a very fast digital signal processor. The inputs to the real-time vehicle dynamic simulation model are a constant vehicle forward speed and from wheel steering angles driven through a steering system by a driver. The output from a real-time simulation model is an electric signal that is proportional to the uniaxial rack force. The vehicle handling lumped parameter dynamic model is validated by a fully nonlinear constrained multibody vehicle dynamic model. The HILS system simulation results sow that the proposed HILS system may be used to realistically test the performance stability , and reliability of an electronic power steering system is a repeated way.