The design of modern industrial products is further improved through the hardware-in-the-loop (HIL) simulation. Realistic simulation is enabled by the closed loop between the hardware under test (HUT) and real-time simulation. Such a system involves a field programmable gate array (FPGA) and digital signal processor (DSP). An HIL model can bypass serious damage to the real object, reduce debugging cost, and, finally, reduce the comprehensive effort during the testing. This paper provides a historical overview of HIL simulations through different engineering challenges, i.e., within automotive, power electronics systems, and different industrial drives. Various platforms, such as National Instruments, dSPACE, Typhoon HIL, or MATLAB Simulink Real-Time toolboxes and Speedgoat hardware systems, offer a powerful tool for efficient and successful investigations in different fields. Therefore, HIL simulation practice must begin already during the university’s education process to prepare the students for professional engagements in the industry, which was also verified experimentally at the end of the paper.