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Battery modeling is of major concern going forward for Hybrid Electric Vehicle (HEV) and Electric vehicle (EV) modeling. The major issue lies in characterizing the battery power, Charge acceptance and reaction to sudden load changes (transient behavior) in relation to battery’s State of Charge (SOC). In particular modeling the battery is challenging task as it requires a lot of test data to understand and validate modeled chemical and electrical characteristics in various operating conditions. Hence, the one of the ways of simulating Battery based Hybrid System is to use battery Hardware-in-the-Loop Simulation (HILS) or simply known as Battery-in-Loop (BIL). With this approach hybrid vehicle or more precisely battery management system (BMS) development time and cost can be significantly reduced by eliminating the detailed battery modeling. To understand the effectiveness of this approach, Battery Hardware-in-Loop test setup was developed.