An electrohydraulic or a hydromechanical system used in a mobile or industrial application is comprised of many different elements such as controllers, sensors, solenoids, pumps, valves, actuators etc. Often the characteristics of these components are non-linear and the interaction complex when subjected to various kinds of inputs and load situations.In order to design a stable and responsive hydraulic system application that would continue to perform reliably, it is essential to have a simulation model of the system at the early stage of the inception of the design. The simulation would predict the expected performance of each of the components of the system and be useful if the actual hardware deviates from the desired performance.To make the simulation effort expedient and worthwhile a faster computer and an easy to use software is necessary. This paper serves as a tutorial on the equations used for hydraulic component modeling as well as deals with the approaches that could be used to speed up the process of analyzing dynamic systems. Simulations of generic applications such as a pressure control valve, throttle valves and load sensing proportional valves are included here to serve as examples from which other applications' models could be built.The focus of this paper is in the architecture of the simulation environment where from simple models of components a hydraulic system is built. The hydraulic system - a group of components connected to form a hydraulic circuit - is then analyzed for desirable behavior. The intent is to demonstrate the parametric analysis, which shows what variables affect the desirable response for different inputs and load conditions. Thus this paper deviates from the normal methodology of stating assumptions, building the model and validating with experimental data. The use of simulation to establish a range of values for parameters in the design stage is demonstrated.