This paper describes development of hardware simulator for the PMSG wind power system, which was designed considering wind characteristic, blade characteristic and blade inertia compensation. The simulator consists of three major parts, such as wind turbine model using induction motor, PMSG generator, converter-inverter set. and control system. The turbine simulator generates torque and speed signals for a specific wind turbine with respect to given wind speed. This torque and speed signals are scaled down to fit the input of 2kW PMSG. The PMSG-side converter operates to track the maximum power point, and the grid-side inverter controls the active and reactive power supplied to the grid. The operational feasibility was verified by computer simulations with PSCAD/EMTDC, and the implementation feasibility was confirmed through experimental works with a hardware set-up.