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An increasing emphasis is being placed in the vehicle development process on transient operation of engines and vehicles, and of engine/vehicle integration, because of their importance to fuel economy and emissions. Simulations play a large role in this process, complementing the more usual test-oriented hardware development process. This has fueled the development and continued evolution of advanced engine and powertrain simulation tools which can be utilized for this purpose. This paper describes a new tool developed for applications to transient engine and powertrain design and optimization. It contains a detailed engine simulation, specifically focused on transient engine processes, which includes detailed models of engine breathing (with turbocharging), combustion, emissions and thermal warm-up of components. Further, it contains a powertrain and vehicle dynamic simulation.