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Dynamic simulation tools that could accurately simulate operational data for both the fault-free and faulty dynamic operation of heating, ventilation, and air conditioning (HVAC) systems and equipment are needed for developing and evaluating advanced control and automated fault detection and diagnosis strategies. Among various HVAC subsystems, fan coil units (FCUs) are relatively simple, inexpensive devices that are used extensively in commercial, institutional and multifamily residential buildings. However, very little has been reported in the literature to improve FCU design and operation. There has also been a lack of dynamic simulation tool development focusing on FCUs. The work reported in this study aims at developing and validating a software tool to simulate operational data generated from FCUs that are operated dynamically under both faulty and fault-free conditions. A comprehensive and systematic validation process, using data collected from real FCUs in a laboratory building, is used to validate the tool under both faulty and fault-free operating conditions in different seasons. The validated tool not only is able to predict real-world FCU behaviors under different control strategies, but it is also able to predict symptoms associated with various faults, as well as the effects of those faults on system performance and occupant comfort. [ABSTRACT FROM AUTHOR]