Design of any communication system for the given requirements involves many aspects like frequency planning, bandwidth requirements, communication link budgeting, subsystems specifications realization to cater to the mission needs etc. Once designed, testing and verification of the communication systems is an important, however, much more challenging task. Of available many approaches for the test and verification, the most reliable method to test the designed communication system is through field measurements. However, this method is not only time consuming and quite expensive, but is also unrealistic due to non-repeatability. The proposed work presents design and development of a dynamic link emulator that creates real-world scenario in lab like environments and implements both, Payload as well as Channel impairments. The major advantage of the proposed work is that it can be customized for any Payload configuration and for any set of Channel parameters. System Design Tools and measurement hardware has been used for the developmental work. Advantages with respect to other earlier proposed configurations are also provided.