This paper presents the dynamic performance test of a complete control and protection system for a Multi-terminal MMC HVDC system using hardware-in-the-loop (HIL) simulation. A novel HIL bench with a cost-effective input and output interface between the control system under test and the real-time simulator is introduced. Two critical test cases, namely the start-up of the MMC connected to islanded networks and the AC fault in the bus close to the MMC substation are studied. The validity of the proposed methodology for the dynamic performance test is confirmed by comparing the results from the HIL test and the actual waveform recorded from the field, after the MMC is commissioned.