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Understanding the complex and dynamic nature of wheel-loader's operation requires a detailed system model. This paper describes the development of a conventional wheel-loader's system model that can be used to evaluate the transient response. The model includes engine details such as a mean value engine model, which takes into account turbocharger dynamics and engine governor controller. This allows the model to predict realistic performance and fuel consumption over a drive cycle. The wheel-loader machine is modeled in LMS Amesim® and the engine governor controller is modeled in Matlab/SIMULINK®. In order to simplify the model, hydraulic loads from the boom / bucket mechanism, steering and cooling fan are modeled as hydraulic load inputs obtained from typical short V-drive cycle. Critical wheel-loader drive cycle inputs into the model have been obtained from testing and have been used to validate the system response and cycle fuel consumption.