Verification is an important aspect of chip design with about half of total engineering time spent on it. In particular, the design and maintenance of the test benches that are required for verification make this an expensive step in the overall chip design. The expense is further compounded by the observation that the test bench is not part of the functional design that forms the eventual product. System-level simulation can be employed to mitigate these expenses, as the designed component is tested by embedding it into a system model. Because of the different tools typically used for the system design and logic emulation, at present, a co-simulation approach to facilitate the system-level verification appears to be the only feasible solution. Co-simulation has to address an important difference in simulation technologies that are typically used in the respective tools. Where system-level design tools often employ a time-driven simulation approach, logic-emulation tools tend to be based on event-driven simulation methods. This presentation discusses the combination of event-driven and time-driven simulation and identifies the issues that arise in such a hybrid approach.