With the evolution of power system components and structures driven mainly by renewable energy technologies, reliability of the network could be compromised with traditional control methodologies. Therefore, it is crucial to thoroughly validate and test future power system control concepts before deployment. In this paper, a Controller Hardware in the Loop (CHIL) simulation for a real-time distributed control algorithm concept developed within the ELECTRA IRP project is performed. CHIL allows exploration of many real-world issues such as noise, randomness of event timings, and hardware design issues that are often not present on a simulation-only system. Octave has been used as the programming language of the controller in order to facilitate the transition between software simulation and real-time control testing. The distributed controller achieved frequency restoration with a collaborative response between different controllers very fast after the unbalanced area is located