The invention discloses digital substation testing simulation method. In the method, an IEC61850 standard digital dynamic testing simulation technology-based substation system testing method is adopted, namely a substation simulation model is established, and the actual motion is simulated for system closed-loop testing so as to detect the dynamic characteristics of a device to be detected. For the integrated design of the system, a frame structure consisting of a PCI board card and a multi-CPU desktop is adopted, and a system simulation testing device consisting of the multi-CPU desktop, a PCI bus-based IEC61850 communication card and a small signal and switching value interface card is established, wherein the multi-CPU desktop is a system control platform, and is used for performing processing such as drawing, simulation computation, man-machine interaction and the like; the PCI bus-based IEC61850 communication card provides a plurality of optical Ethernet ports to connect a plurality of protective devices and control equipment; and the protective devices receive MU data of the communication card, and the generated information such as switch position change and the like is returned to the desktop through the communication card to participate in electromagnetism transient calculation for the simulation model.