The German MoD Research Establishment for Electronics and Communication Technology is currently implementing one of the world's largest advanced dome based Hardware-in-the-Loop simulation facility with high dynamics multispectral target representation. e.sigma Systems, Munich, is the prime contractor for the simulation systems and associated infrastructure. The facility will be used for research, development and validation of fire control and optronic seeker systems. The visual system for the target simulation contains a 40m dome with a special screen surface of 2200 sqm and a number of high resolution projection systems for the visual and IR spectrum. The simulation system also includes high dynamics, high precision motion simulators for the multispectral target projectors and the seeker systems under test. A high speed computer network for control, data acquisition and data recording links the subsystems at real time simulation rates of 1000Hz. The paper discusses the purpose of the simulation facility and its implementation.