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The emerging emphasis and benefits of distributed generation on smaller scale networks has prompted much attention and focus to research in this field. Much of the research that has grown in distributed generation has also stimulated the development of simulation software and techniques. Testing and verification of these distributed power networks is a complex task and real hardware testing is often desired. This is where simulation methods such as hardware-in-the-loop become important in which an actual hardware unit can be interfaced with a software simulated environment to verify proper functionality. In this thesis, a simulation technique is taken one step further by utilizing a hardware-in-the-loop technique to emulate the output voltage of a generator system interfaced to a scaled hardware distributed power system for testing. The purpose of this thesis is to demonstrate a new method of testing a virtually simulated generation system supplying a scaled distributed power system in hardware. This task is performed by using the Non-Linear Loads Test Bed developed by the Energy Conversion and Integration Thrust at the Center for Advanced Power Systems. This test bed consists of a series of real hardware developed converters consistent with the Navy's All-Electric-Ship proposed power system to perform various tests on controls and stability under the expected non-linear load environment of the Navy weaponry. This test bed can also explore other distributed power system research topics and serves as a flexible hardware unit for a variety of tests. In this thesis, the test bed will be utilized to perform and validate this newly developed method of generator system emulation. In this thesis, the dynamics of a high speed permanent magnet generator directly coupled with a micro turbine are virtually simulated on an FPGA in real-time. The calculated output stator voltage will then serve as a reference for a controllable three phase inverter at the input of the test bed that will emulate and reproduce these voltages on real hardware. The output of the inverter is then connected with the rest of the test bed and can consist of a variety of distributed system topologies for many testing scenarios. The idea is that the distributed power system under test in hardware can also integrate real generator system dynamics without physically involving an actual generator system. The benefits of successful generator system emulation are vast and lead to much more detailed system studies without the draw backs of needing physical generator units. Some of these advantages are safety, reduced costs, and the ability of scaling while still preserving the appropriate system dynamics. This thesis will introduce the ideas behind generator emulation and explain the process and necessary steps to obtaining such an objective. It will also demonstrate real results and verification of numerical values in real-time. The final goal of this thesis is to introduce this new idea and show that it is in fact obtainable and can prove to be a highly useful tool in the simulation and verification of distributed power systems.