According to similarity principle, the dynamic characteristic simulation requirements of laser indication target in hardware-in-the-loop simulation of laser-guided weapon are analyzed. The continuous various of laser facular energy realized by polarization method is proposed. The continuous various technology scheme is realized by a telescopic optical system. Testing results show that the dynamic range of the facular energy is more than 104 times, dynamic error is less than 5%, the dynamic range of facular size is not less than 20 times and dynamic error is less than 10%, which can meet the requirements of hardware-in-the-loop simulation of laser-guided weapons.