This paper introduces a physical scaled-down realistic substation laboratory model development for translational research and education in smart grids. The development of a substation panel with four 3-φ feeders of 415 V, 65 A rating is described in detail. The developed substation model can be configured to realize seven widely used substation bus bar arrangements. A programmable logic controller (PLC) is used to create interlock mechanisms for mimicking the actual substation operation practices. Provision is made to realize the gang and independent pole operation of circuit breakers, the manual and remote modes of operation, and different types of current transformer arrangements. The substation panel can host up to 10 commercial IEDs, and multiple substation panels can be cascaded to form a bigger station using the master-slave configuration of PLCs. All the potential transformer and current transformer measurements, circuit breaker, isolator, and earth switch status signals are made available for connecting field devices. The developed substation model can be used for advanced research on substation automation using IEC61850, validation of new protection strategies, implementation and testing of new algorithms (such as topology processing, state estimation) for energy management systems (EMS) like how they get implemented in the field.