Embedded systems continue to become more complex. As a result, more companies are utilizing model-based design (MBD) development methods and tools. The use of MBD methods and tools is helpful in increasing time to market and having instant feedback on the system design. One area that continues to mature is the testing and verification of the MBD systems. This paper introduces a hybrid approach to functional tests. The test system is composed of simulation software and real-time hardware. It is not always necessary to test a system in a real-time environment, but it is recommended if the goal is to deploy the system to a situation that requires real-time response. Vehicle drive cycles and powertrain control are utilized in this research as the example test case for this paper. In order to test the algorithms on a real-time system, it is necessary to understand the target controller's computing limitations and adjust the algorithms to meet these limitations.