A system compensator is designed to cancel the mechanical characteristics of a power electronics-controlled induction motor drive with a coupled electrical generator system. The emulation scheme using the compensator enables accurate emulation of high-speed and high-power mechanical system dynamics. The compensator is developed based on the system transient response of the test rig, considering the full operating range of the test system. The design process of the compensator is described, and it is validated in both the time and frequency domains. Finally, the effectiveness of the compensator is demonstrated by simulation and experimental emulation of aero gas engine dynamics.