The operation and control of the power system in an efficient way is important in order to keep the system secure, reliable and economical. With advancements in smart grid, several new algorithms have been developed for improved operation and control. These algorithms need to be extensively tested and validated in real time before applying to the real electric power grid. This work focuses on the development of a real time test bed for testing and validating power system control algorithms, hardware devices and cyber security vulnerability. The test bed developed utilizes several hardware components including relays, phasor measurement units, phasor data concentrator, programmable logic controllers and several software tools. Current work also integrates historian for power system monitoring and data archiving. Finally, two different power system test cases are simulated to demonstrate the applications of developed test bed. The developed test bed can also be used for power system education.