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This study describes the creation of a hardware-in-the-loop (HIL) environment for use in evaluating network architecture, control concepts and equipment for use within marine electrical systems. The environment allows a scaled hardware network to be connected to a simulation of a multi-megawatt marine diesel prime mover, coupled via a synchronous generator. This allows All-Electric marine scenarios to be investigated without large-scale hardware trials. The method of closing the loop between simulation and hardware is described, with particular reference to the control of the laboratory synchronous machine, which represents the simulated generator(s). The fidelity of the HIL simulation is progressively improved in this study. First, a faster and more powerful field drive is implemented to improve voltage tracking. Second, the phase tracking is improved by using two nested proportional-integral-derivative-acceleration controllers for torque control, tuned using lambda tuning. The HIL environment is tested using a scenario involving a large constant-power load step. This provides a very severe test of the HIL environment, and also reveals the potentially adverse effects of constant-power loads within marine power systems.