The article presents the Power Hardware in the Loop (PHIL) approach for an autonomous power system analysis based on the synchronous generator model incorporating magnetic saturation effects. The model was prepared in the MATLAB/Simulink environment and then compiled into the C language for the PHIL platform implementation. The 150 kVA bidirectional DC/AC commercial-grade converter was used to emulate the synchronous generator. It was controlled by the real-time simulation control unit with the prepared synchronous generator model incorporating magnetic saturation effects. The proposed approach was validated on the 125 kVA synchronous generator connected to the active and reactive loads of different values for the steady-state and the transient-state performance studies.