The present paper suggests an on-line hybrid test environment for evaluating the seismic performance of steel bracing connections. The test method combines substructuring techniques and finite element analysis. The behavior of the brace member is simulated by the finite element analysis program ABAQUS, while the bracing end connections are physically tested. Two actuators are used to simulate the physical continuity between the analytical and experimental substructures by controlling axial load and out-of-plane rotation. A MATLAB user subroutine is created as the interface between the main control program and ABAQUS to impose the target rotation and axial force to the connection quasi-statically. A gusset plate connection designed to behave as a pin connection is tested and its efficiency to accommodate inelastic rotations up to a 4.0% story drift is evaluated. The test method is reasonable and smooth operation is achieved. The test system ensures pragmatic loading and boundary conditions to the brace connections, which are tested in full interaction with the brace member until failure. The maximum strength and rotation capacity of the connection can be clarified under actual cyclic inelastic rotations and varying axial loads derived from the inelastic behavior of the brace member.