A fuzzy adaptive PID control algorithm of on-line modifying quantization and scale factors has been represented for the FESTO liquid level process control system in this paper. As the real-time simulation system of dSPACE can link Matlab/Simulink seamlessly, through introducing the fuzzy adaptive PID control algorithm to the dSPACE simulation platform by Matlab/Simulink, an experiment has been performed in the FESTO liquid level control. The experimental results show that the fuzzy adaptive PID intelligent control algorithm has a better control effect, and the real-time simulation system of dSPACE provides a good verification platform for the validation of intelligent control algorithms.