This thesis project is conducted in collaboration with Swepart Transmission AB, aimed to dynamically simulate the compact gearbox design with planetary gears meant to be used in robots. The primary objective of this project is to analyze operational principles of planetary gears and their suitability for mitigating lost motion (backlash). Simulations have been carried out using MSC Adams software where the input speed is 1400 rpm on the pinion gear, which is equal to 1100 deg/s when applied to the sun gear. An adjustment gear is mounted atop sun gear, which is used to adjust the position of the planet gears and it is locked with different variations of 0, 5 and 10 degrees of angular displacement to adjust the planet gears. Additionally, one of the planet gears is selected and the position of teeth in that planet gear is deviated by 10, 20, 30 and 40 micrometers and these new gears are then placed in position of the existing planet gear one by one. These models are then simulated to study the variations and effects of angular velocity on the ring gears, angular velocity of the adjustment gear, displacement in radial direction of the planet gear after it is adjusted, force and torque generated on contact between the planet gear and the ring gear over a period of 5 seconds using 1000 time steps.