Abstract: The system-wide closed-loop physical simulation on a three-axis air-bearing simulator, integrated with the payloads of a high-accuracy remote sensing satellite, can be used to simulate the dynamics of the in-orbit satellite and verify the behavior of the attitude control system and the imaging system. The high-accuracy identification technique for the moment of inertia and the interference torque is used to determine the parameters for the adjustment of the simulator mass property and the quantitative assessment of the whole satellite test performance. In this paper, a new identification technique of using the reaction wheels to generate the excitation and using the laser gyros to determine the simulator attitude is proposed, which is different from the traditional methods. With this technique, only the angular velocity is used without the need for the angular acceleration, thus, the noise amplification due to the differentiation of the angular velocity can be avoided. The relative error of the proposed identification technique for the moment of inertia is below 3.5%, and the identification results show that the aggregation interference torque of the simulator system is below 0.003 N·m, which can meet the requirement of the high-accuracy parameter identification.