Testing on theodolite tracking control system is very important for the theodolite development. The function structure of the simulation test system was established. Real-time Workshop (RTW) was used to realize the tracking control algorithm fast. The virtual target motion scenes, which accord with the theodolite imaging character and effect and satisfy various simulation test demands, were rendered real-time based on the visual simulation technology. The practical applications show that this simulation test system can be used to test theodolite tracking control system and solve the limitation of traditional indoor test methods. It is not only convenient and fast, but also targeted and repeatable. The test system is quite useful to analyze and design theodolite tracking control system.