It is too risky to install a newly designed device, component, or controller, directly into a real power system without rigorous testing. To help derisk the system integration, and to assist in the design process, computer simulation is an accepted and widely adopted tool. However, in a simulation‐only environment, many real‐world issues such as noise, randomness of event timings, and hardware design issues are not well explored. In addition, there are limits on the size and fidelity of system, which can be simulated, due to the required computational intensity, and because control systems for devices often contain software that is proprietary and cannot be modeled accurately. Physical hardware‐in‐the‐loop simulation provides an interim stage between purely computer‐based simulation and real device deployment. Part of the power system (or “smart grid”) is simulated, but specific components are implemented in actual hardware. The hardware may consist of instrumentation, relays, or controllers, carrying no primary current. Such testing is termedsecondary hardware‐in‐the‐loop, as the signals exchanged between the simulation and hardware consist only of measurements and control values. A more advanced environment is created where primary power flow is exchanged with the hardware. This is termedprimary hardware‐in‐the‐looporpower hardware‐in‐the‐looptesting. In addition to measurement and control signals being exchanged with the simulation, an interface is required at which primary power is exchanged between the simulation and the hardware, at the voltage and current levels suitable for the hardware under test. Creation of such environments is complex, but allows steady‐state, dynamic, and worst‐case scenarios to be recreated in a controlled environment. Therefore, hardware‐in‐the‐loop testing offers a cheaper, safer, faster, and more comprehensive derisking process than trying the hardware for the first time on a real network. The complexity and interconnected nature of the smart grid means that such hardware‐in‐the‐loop‐based testing is becoming even more critical to understanding the behavior of systems and schemes, and consequently the safe and secure introduction of new technologies.