Target-in-the-loop (TIL) systems are key to engaging aerial threats and enabling laser processing. This work simulates a TIL system and evaluates its performance under varying atmospheric turbulence and target distances. The goal is to assess how these factors affect energy delivery and real-world viability. A computational model was developed using standard wavefront propagation to account for turbulence and target surface roughness. The simulation allows controlled changes in turbulence strength and range. An experimental setup was also created to validate the results. Findings show that compensating for surface roughness is crucial, and system performance improves significantly with a controller—boosting peak intensity by up to 60% and power in the bucket by 10%. A tradeoff exists between distance and turbulence strength, but adaptive optics can help extend operational range.