The invention provides a development and test system and method for whole vehicle in-the-loop automatic driving in a laboratory. The system comprises a four-wheel-drive road simulation dynamometer, a dynamometer control system, a front wheel restraint system, a steering resistance simulation system, a vehicle, a virtual scene simulation system, a scene projector, an annular curtain automatic driving real-time controller, a radar signal simulation system, a test system control cabinet, an automatic driving algorithm development and test management system, a network communication switch, a radar simulation signal camera obscura, and a 5G Internet of Things information simulation system. Accurate road load simulation, including simulation of different loads of wheels under different road surfaces, is realized by using a real tested vehicle and utilizing a road load simulation system, and an automatic ADAS test result and a control algorithm based on a VIL environment are closest to a real application scene. The development of the VIL automatic driving platform and the application of the test platform can greatly shorten the time and cost of the ADAS vehicle road test.