Model-based design (MBD) has become a cornerstone in the development of embedded software, particularly in the automotive industry. Processor-in-the- Loop (PiL) simulation bridges the gap between virtual simulation environments and real hardware, enabling early verification and validation of control algorithms running on target processors. The design and implementation of toolchain is required for target specific code generation, compilation, and execution. Developing a toolchain specifically for the target architecture is crucial to preventing errors and ensuring smooth production. The configuration and designing of toolchain are one time effort of all Simulink model which want to be test on board. This research investigates the importance of PiL for embedded systems in the automobile area. It describes the construction of a toolchain that integrates PiL simulation with Simulink, a popular MBD tool. The paper discusses the unique integration of TRACE32, a debugger and code analysis tool, with Simulink for testing programmes on Infineon devices. TPT makes use of graphical test models that are easy to understand and have the capacity to automate complex closed loop tests in real time. It was Daimler Software Technology Research that initially developed TPT. Nowadays, vendors and automakers employ it in their development projects for production vehicles.