The dynamic stability of railway vehicle has long been one of the important issues in railway safety. The dynamic simulator has been used as a tool for investigating the dynamic stability of railway vehicles and wheel/rail interfaces. In particular, small scale simulators have been widely used in laboratory studies instead of full scale roller rigs which can be quite costly and rather inconvenient for testing out the effect of diverse design parameters. But techniques for design of a small scale simulator for the fundamental study about the dynamic characteristics of the wheel-rail systems and the bogie systems have not been well developed in Korea. Therefore, a research on the development of a small scale simulator for investigating bogie dynamics needs to be undertaken. The present paper investigates design of a small-scaled derailment simulator and the design of a small scale bogie. The simulator developed can be used to investigate the effect of diverse parameters such as attack angle, wheelbase and cant on dynamic behavior of the bogie and key dynamic performance parameters such as derailment coefficient and critical speed.