The aim of this thesis is to develop a dynamic model for simulation of a hydraulic servo drive on a test rig, built for the purpose of testing different control strategies for the motion of inertial loads. The mechanical system, which consists of rigid bodies and joints, is modelled in SimMechanics®, which is a dedicated environment for three-dimensional multi-body simulation, including kinematics and dynamics. The model of the hydraulic system is based on the numerical solution of ordinary differential equations (ODE). Both models were combined within the Simulink® environment in the sense of co-simulation, using the prismatic translational interface. The hydraulic valve used for the application is controlled by a complex embedded system providing two main modes for individual meter-in and meter-out control. For this purpose, it uses integrated pressure sensors, displacement sensors and mathematical models for oil-flow estimation to make control decisions. Consequently, one focus of this work was to include this behaviour into the simulation model. All essential results are presented in graphs and compared with measurements of the real system. The simulation results are consistent and match well with the measurements. The simulation model developed in this work can be used in the future to explain the principle of independent metering in education, to verify new control strategies and to find causes of problems in the real machine by reproducing deviations from the normal behaviour.