A computer simulation of a high performance two-stroke engine has been validated by a transient test method. The simulation included unsteady gas dynamics, together with detailed mechanical models for the reed valve, etc. The combustion model used Vibe coefficients derived directly from measured cylinder pressures. Cylinder scavenging characteristics which were measured on The Queen's University of Belfast (QUB) single-cycle rig were also incorporated in the simulation. Validation of the model involved use of an inertial dynamometer and data acquisition system which has been developed at QUB. This dynamometer incorporates a flywheel which is directly coupled to the engine. During a test, the engine is accelerated, and the torque and power are calculated from the flywheel speed characteristics. Further, at pre-determined engine speed intervals, the cylinder and exhaust pressures may be recorded. This testing system provided a convenient and rapid experimental method to acquire data. Measurement of power, pressures and temperatures during transient testing are discussed. Also presented are methods which reduce the errors arising from the slow response of thermocouples. The measured results are compared with the computer predictions for power and exhaust pressure. Excellent correlation was achieved.