—As the need for embedded systems to interact with other systems is growing fast, we see great opportunities in introducing the hardware-in-the-loop technique to the field of hardware/software co-design of embedded systems. This technique reduces the need to develop models for existing hardware and increases the accuracy of the overall system. This work is especially important now that complexity and time-to-market constraints demand early simulation, verification, and architectural exploration of systems. We introduce the hardware-in-the loop technique to the field of hardware/software co-design of industrial embedded systems using SystemC as the modeling environment. We conceptualize the hybrid channel to clearly define the communication between real and virtual (modeled) subsystems. We patch the SystemC kernel for hard real-time execution and we improve the underlying operating system to guarantee an upper bound for the overall system latency. We have performed tests to measur...