The shipping industry is forced to reduce its emissions and underwater radiated noise in order to decrease the impact on the environment and limit global warming. Moreover, a low acoustic signature can be lifesaving for a navy ship, especially during submarine on mine threats. To be able to operate as flexible as possible under these threats, a flexible propulsion plant is required. A diesel engine with a controllable pitch propeller (CPP) is contributing to this. A method to reduce the emissions and noise of such a plant is to improve the control strategy. Often this is tested with numerical models. However, frequently they contain many simplifications of reality, for example, the neglection of several hydrodynamic effects. Hardware In the Loop (HIL) takes these effects into account by replacing a software part of the model with a hardware component. In this research, the CPP is the scaled hardware part. A feasibility study is performed to determine whether a propeller open water HIL setup can be used to simulate the dynamic behaviour of the propulsion plant. Therefore, a comparison is made between full and model scale numerical simulation of a diesel engine with a CPP controlled by adaptive pitch control (APC). To reduce the pitch actuations with the APC strategy a Kalman filterwith deadband is implemented. Full-scale simulations with irregular waves demonstrated that the pitch actuations could be reduced during acceleration and at a constant speed. The validated full-scale model is Froude scaled and implemented in a model of the open water HIL setup. The results of the full and model scale simulations are very similar. Thus, the HIL setup can be used to simulate the dynamic behaviour of a propulsion plant. However, the hardware limitations such as the backlash in the CPP blades, the low sample rate of the actual pitch and the Froude dissimilarity of the acceleration of the towing tank need to be resolved to ensure the scaled simulations are representative for the actual, full scale, vessel. Due to these limitations, it is not possible to use the setup at this moment to perform experiments and improve novel control strategies. If these physical limitations of the current HIL setup are overcome, the effect of the propeller and the pitch control strategy during turns can be investigated by performing experiments with oblique inflow.