This paper discusses the development of a ground based variable stability flight simulator. The simulator is designed to meet the pilot training requirements on flying qualities. Such a requirement arose from a premier Flight-Testing School of the Indian Air Force. The simulator also provides a platform for researchers and aerospace students to understand aircraft dynamics, conduct studies on aircraft configuration design, flight mechanics, guidance & control and to evaluate autonomous navigation algorithms. The aircraft model is built using open source data. The simulator is strengthened with optimization techniques to configure variable aircraft stability and control characteristics to fly and evaluate the various aspects of flying qualities. The methodology is evaluated through a series of engineer and pilot-in-the-loop simulations for varying aircraft stability conditions. The tasks chosen are the proven CAT A HUD tracking tasks. The simulator is also reconfigurable to host an augmented fighter aircraft that can be evaluated by the test pilot team for the functional integrity as a fly-through model.