This Thesis is written to obtain the Master of Science degree of Maritime Technology at Delft University of Technology. It describes a research regarding with the calibration(parameter identification), validation and linearization of a ship propulsion system model. In the meantime, the Thesis is also one sub-project under the research program "Potential of Hardware-In-the-Loop Simulation in the Towing Tank" held by Dr.Ir.A.Vrijdag. HIL (Hardware-In-the-Loop) Simulation is widely used in Engineering Technology Field, and has been proved to be a very effective, highly-efficient, economical and environmental friendly strategy in the test and development of engineering control systems. The model scale ship tests nowadays, on the other hand, need to be improved and HIL Simulation provides an innovative & creative way, therefore it is reasonable to start the program and explore more in this field.