Abstract: Based on the on-line simulation history and its industrial application, defects of on-line simulation in domestic pipeline application are pointed out: the embedded software cannot meet the practical needs of pipeline transportation; it is hard for users to deeply understand the software function and maintenance, and it is lack of analysis and evaluation about the practicality of embedded software. Frankly, the core of on-line simulation system is to collect available operational parameters and map the realistic pipeline state to improve the operation state. The essence of on-line simulation system is to use reliable technology to control the operation process and realize pipeline transportation process automatization. Considering the total management goal of long-distance pipeline and operation characteristics, the main study directions of on-line simulation system are in data filter, state evaluation and control device optimization.