To reduce the research and development costs of the internal combustion engines (ICE), their initial testing and performance control is conducted on the testbeds. By using eletrical brake with control unit, the ICE can be run at any desired operating point or can even be connected to an existing mathematical model that simulates the rest of the vehicle and the environment. To shorten the time it takes to set up the ICE to the testbed, a reliable ICE model has to be designed in order to accurately calculate characteristics of a real engine. In the first part of the thesis, the desired accuracy and complexity of the model are defined. With these assumptions, parts of the model that will be described theoretically or empirically are selected in order to enable the model to in real time, or even faster. A crank-angle dependent model is described and the results are verified with the relevant software. Afterwards, the time-dependent model is described, with whom it is possible to run the simulation in the desired time frame and to connect it with the models of the rest of the vehicle.In the second part of the thesis, the relevant control systems for engine performance are designed, from the idle speed controller to the cruise control system. These control systems are crucial for the final engine performance and its stability in the desired operating points. Sliding mode control was selected as the default controller due to its robust properties and good performance in various engine states. Finally, the model is compiled to a globally recognized standard for mathematical model sharing (FMU) which runs faster than the model designed in Simulink and acts as a sort of a black box. Only the inputs and the outputs of the model are visible, while the content of the model is inaccessible and unchangeable.