A simulation technique, which simulate dynamic motion and communication environments of ship in the lab, is needed in order to reduce the testing cost when we evaluate the transfer alignment performance of shipboard INS. Hardware-In-the-Loop Simulation(HILS) can be used as an effective test method for those system because it can provide flexible and realistic simulation environments, various test scenario, and repeated test environment in the lab without additional cost and person. This paper presents the methods for implementing the real time HILS environment for testing transfer alignment performance of shipboard INS. It includes real time executive for controlling realtime simulation and calculating the ship motion, communication method for interfacing between the systems, and coordinate transformation method for converting real ship coordinate attitude data to lab coordinate attitude data.