This paper presents design and implementation of a MATLAB–based SIMULATOR for generating different telemetry data streams, based on different telemetry frame structures, in IRIG–106 telemetry standard. Presented SIMULATOR can be considered a tool for research and design of different efficient algorithms for telemetry data processing, including data compression codes, error correcting based algorithms, and frame synchronization methods. Description of different simulated telemetry signals is provided, including test patterns, harmonic signals, arbitrary digital sequences, recorded data, and filtered signals. The presented SIMULATOR supports different telemetry frame structures till commutation based on three stages of circuit switching with different frame synchronization codes in IRIG-106 standard format. The presented SIMULATOR is able to simulate the effect of imposing the telemetry data stream to Additive White Gaussian Noise (AWGN) on communication channel during transmission, as well as the effect of the noise from the on-board sensors during acquisition phase.