Future transportation systems for aircraft, vehicles or marine vessels are all candidates for redesigned propulsion systems as a result of the "more electric" revolution. Accurately emulating these new propulsion system designs to assess the dynamic engine-generator-electrical system interactions will be an invaluable design tool. A hardware-in-the-loop (HIL) mechanical emulation system is presented which utilises a novel compensator design to extend the emulation capability of a physical hardware system without the need for any hardware changes. A 30-kW test system is used to emulate variable inertia mechanical systems and drivetrain models to show the capability of a single test system to be used to emulate a wide range of systems. The compensator is not restricted to transport applications and will also improve the emulation of smart-grid sources and advanced renewable sources.