Despite the increasing scale of ASICs and the increasing complexity of embedded systems in which they are incorporated, developers continue to expect reductions in development time. HW/SW co‐simulation has been put forward as a potential means of meeting this demand since it allows inconsistencies between components such as ASICs and software to be spotted before a hardware prototype has been completed, and since it is also an efficient tool for the functional verification of ASICs, a process that takes up a large part of their development time. However, it has not been widely used for the functional verification of real systems due to various problems, such as the high development cost of simulation environments, the slow simulation speed, and the limited scope of this verification. This paper proposes a method that solves these problems yet is still able to offer the basic advantages of HW/SW co‐simulation, such as the ability to efficiently verify ASIC functions and the interfaces between components. By applying the proposed method to a system under development we were also able to construct a complete simulation environment in just two weeks with one‐eighth of the amount of code needed for ASIC development. We have also confirmed that, compared with the logical simulation of ASICs on their own, the proposed method approximately doubles the verifiable scope, can reduce the amount of data statements for verification by a factor of 150, can detect 18 types of fault such as inconsistencies in the interfaces between components, and yet it only results in a 7% drop in simulation speed. © 1999 Scripta Technica, Syst Comp Jpn, 30(1): 43–59, 1999