In recent years graphical dynamic system simulation has become very important in the design and development stage, as new strategies can be examined without expensive measurements. This paper describes the development of a real time simulation model for a turbocharged diesel engine and an automatic transmission of a tracked vehicle using graphical programming environment in Matlab/Simulink. This work is part of a vehicle simulation model which is under development. A Mean Value Engine Model (MVEM) is used for simulation of engine dynamics. A Torque Converter (TC) is used as a fluid coupling between the engine and the transmission gearbox. This model is used to predict the dynamic response, both in steady and transient operation. Various illustrative studies have been conducted to demonstrate the capability of the model to predict the transient system response. Copyright © 2009 SAE International.