Testing self-driving vehicles is still a new and immature process; the globally harmonised procedure expected much later. The resource-demanding nature of real-world tests makes it indispensable to develop and improve the efficiency of virtual environment based testing methods. Accordingly, a novel Xin-the-Loop framework is proposed to fully exploit the recent advances in info-communication technologies, vehicle automation, and testing and validation requirements. This methodology real-time connects physical and virtual testing with high correlation while completely blurs the sharp boundaries between them. Measurement results confirm the superior performance of the 5G communication link in providing a stable, real-time connection between the real world and its virtual representation. The live demonstration proved the presented concept at the newly constructed Hungarian proving ground for automated driving. The performed investigation also includes comprehensive benchmarking, focusing on the most up-to-date automotive testing frameworks. The analysis considers the methodologies and techniques applied by the most relevant actors in the automotive testing sector worldwide. Accordingly, the newly developed testing framework is evaluated and validated in light of the state-of-the-art methods used by the automotive industry.INDEX TERMS Automotive proving ground, automated vehicle control, autonomous vehicle, co-simulation, digital twin, mixed-reality testing, scenario-based testing, testing and validation, virtual and mixed reality, V-model, X-in-the-loop testing.