Due to the large variety of different embedded processor types, retargetable software development tools, such as compilers and simulators, have received attention recently. Retargetability allows to handle different target processors with a single tool. In this paper, we present a system for automatic generation of instruction set simulators for a class of embedded processors. Retargetability is achieved by automatic generation of simulators from processor descriptions, given as behavioral or RT-level HDL models. The presented system is capable of bit-true simulation for arbitrary processor word lengths, and it generates both interpretive or compiled simulators. Experimental results for different processors indicate comparatively high simulation speed.