SUMMARYPrior to testing embedded software in a target environment, it is usually tested in a host environment used for developing the software. When a system is tested in a host environment, its real-time behaviour is affected by the use of simulators, emulation and monitoring. In this paper, the authors provide a semantics for host-based testing with simulated time and propose a simulated-time solution for distributed testing with TTCN-3, which is a standardized language for specifying and executing test suites. The paper also presents the application of testing with simulated time to two real-life systems.