Recent interest in formation flying satellite systems has spurred a considerable amount of research in the relative navigation and control of satellites. Development in this area has included new estimation and control algorithms as well as sensor and actuator development specifically geared toward the relative control problem. This paper describes a simulation facility, the Formation Flying Test Bed (FFTB) at NASA Goddard Space Flight Center, which allows engineers to test new algorithms for the formation flying problem with relevant GN&C hardware in a closed loop simulation. The FFTB currently supports the inclusion of GPS receiver hardware in the simulation loop. Support for satellite crosslink ranging technology is at a prototype stage. This closed-loop, hardware inclusive simulation capability permits testing of navigation and control software in the presence of the actual hardware with which the algorithms must interact This capability provides the navigation or control developer with a perspective on how the algorithms perform as part of the closed-loop system. In this paper, the overall design and evolution of the FFTB are presented. Each component of the FFTB is then described. Interfaces between the components of the FFTB are shown and the interfaces to and between navigation and control software are described. Finally, an example of closed-loop formation control with GPS receivers in the loop is presented.