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The terms obsolete and obsolescence are heard in almost every industry today. For suppliers and users of test systems facing product obsolescence, these terms represent both opportunities and challenges depending upon one's perspective. For manufacturers of replacement items, it represents new business possibilities, and for those maintaining the systems, it can mean investment and expense. By offering replacement solutions for obsolete instrumentation, the life of test systems can be cost-effectively extended. This paper presents the requirements and features associated with the development of an Infrared Target Simulator utilized by the Air Force to test IR (InfraRed) Seekers at the O-level, Depot, and I- level. The present legacy test simulator was a stand-alone, bulky, off axis design that became no longer producible or repairable due to obsolete hardware. The legacy system was also designed and manufactured at a time when modularity was not a consideration - a key feature for new modern systems which allows the production of new modules using current technology hardware and facilitating upgrades, extending the legacy test unit's service life.