The hybrid simulation method is adopted to develop engine dynamic test bed based on eddy-current dynamometer. The hybrid simulation scheme of engine dynamic test bed is designed. The principle is discussed. Finally, the CAD method is used to design main parameters of engine dynamic test bed based on simulation ECE15 and US LA4-CH Driving Schedules by Shanghai Santana 2000 car. The results are compared to the actual test results on the chassis dynamometer. The hybrid simulation method is proved to be an efficient way by simulation and comparison.