The report describes three research efforts carried out under a project titled “Development of Hardware-in-the-Loop (HiL) Simulation and Paramics/VS-PLUS Integration” sponsored by the California Department of Transportation (Caltrans) under Task Order 5311. The first effort developed and evaluated traffic signal optimization with Hardware-in-the-Loop Simulation (HiLS), using the NIATT Controller Interface Device (CID) manufactured by McCain Traffic Supply to provide real-time linkage between the Paramics microscopic simulation and a NEMA TS1 controller. An adaptive control system incorporated the traffic flow prediction model to predict the traffic flows from the surrounding intersections, and an online signal optimization model was used to obtain the signal timing plan for the subsequent cycle, based on the traffic flows predicted in the previous cycle. The performance of the proposed adaptive control system was evaluated through a case study in which HiLS is applied to a small urban network in Logan, Utah. The second effort developed a Paramics plug-in that worked over a serial port connection to a specially modified 170 for HiL operation. After this initial development, the NIATT/McCain CID was configured to work as a Paramics plug-in with both 170 and 2070 controllers, and experiments were carried out to compare the performance of Paramics simulations with the UC Irvine Paramics signal controller plug-in with HiLS. In the third effort, investigation and evaluation of integrated Paramics/VS-PLUS software was carried out, resulting in a user’s guide for use of the integrated Paramics/VS-PLUS simulation software.