In this paper, the static and dynamic simulations, and mechanical-level Hardware-In-the-Loop (MHIL) laboratory testing methodology of prototype drive systems with energy-saving permanent-magnet electric motors, intended for use in modern construction cranes is proposed and described. This research was aimed at designing and constructing a new type of tower crane by Krupiński Cranes Company. The described research stage was necessary for validation of the selection of the drive system elements and confirmation of its compliance with applicable standards. The mechanical construction of the crane was not completed and unavailable at the time of testing. A verification of drive system parameters had to be performed in MHIL laboratory testing, in which it would be possible to simulate torque acting on the motor shaft. It was shown that the HIL simulation for a crane may be accurate and an effective approach in the development phase. The experimental tests of selected operating cycles of prototype crane drives were carried out. Experimental research was performed in the LINTE^2 laboratory of the Gdańsk University of Technology (Poland), where the MHIL simulator was developed. The most important component of the system was the dynamometer and its control system. Specialized software to control the dynamometer and to emulate the load subjected to the crane was developed. A series of tests related to electric motor environmental parameters was carried out.