A system designed to simulate stray current and rail potential for urban rail transit is proposed. The proposed bidirectional variable resistance module (BVRM) is used to simulate the train movement under different operation conditions. Moreover, the control strategies for the simulation system are analyzed at the same time. The simulation system can be used to not only analyze the effects of stray current and rail potential, but also evaluate methods which control these effects before they are implemented in actual urban rail transit. Finally, the feasibility and validity of proposed simulation system and control strategies are verified both by simulation and experimental results.