It is a time and cost consuming way to physically develop Hybrid Electric Vehicle (HEV) supervisor controller due to the increasing complexity of powertrain system. This study aims to investigate the HEV supervisor controller development process using dSPACE midsize Hardware in the Loop simulation system (HIL) for HEV powertrain control. The prototyping controller was developed on basis of MircoAutoBox II, and an HIL test bench was built on midsize HIL machine for the purpose of verification. The feasibility and capability of HIL were attested by the prototyping control strategy and fault modes simulation. The proposed approach was demonstrated its effectiveness and applicability to HEV supervisor controller development.