In recent days, the study on hybridization of the heavy-duty is going on, actively. Especially, the improvement of fuel economy can be maximized in the intra-city bus because it drives the fixed route. For developing the hybrid electric intra-city bus, optimized control strategy which is possible to be applied with real vehicle is necessary. If the real-time control strategy is developed based on the HILS, it is possible to verify the real-time ability and fail-safety function which has the vehicle stay in safe state when the functional errors are occurred. In this study, the HILS system of series hybrid electric intra-city bus is developed to verify the real time control strategy and the fail-safety functions. The main objective of the paper is to build the HILS system for verifying the control strategy (rule-based control) which is implemented to reflect the Dynamic Programming results and fail-safety functions.