AbstractThe HAGAR project is building a high‐performance disk controller. It is an embedded system for which many hundreds of thousands of lines of embedded software will have to be developed concurrently with the development of the hardware. We found existing methods for embedded software development, such as simulation and remote cross development, to be inadequate for us. To meet our special needs, we developed a distributed development environment that combines and extends the capabilities of existing methods while fixing their drawbacks.Our environment is based on a processor‐pool architecture, in which multiple hardware sets are pooled and managed systematically. It supports embedded software development for many programmers at different sites. It allows for the emulation of non‐existing hardware adaptor cards and for the integration of embedded software testing with hardware simulation. The environment provides a single system image, hiding many hardware and configuration details from its users. From the perspective of the programmers, our environment makes developing embedded software for special hardware systems as easy as developing application programs for a UNIX workstation.