A hydraulically driven control rod is being developed at Kraftwerk Union for integration in the primary system of a small nuclear district heating reactor. An elaborate test program, under way for ∼ 3 yr, was initiated with a plexiglass rig to understand the basic principles. A design specification list was prepared, taking reactor boundary conditions and relevant German rules and regulations into account. Subsequently, an atmospheric loop for testing of components at 20 to 90°C was erected. The objectives involved optimization of individual components such as a piston/cylinder drive unit, electromagnetic valves, and an ultrasonic position indication system as well as verification of computer codes. Based on the results obtained, full-scale components were designed and fabricated for a prototype test rig, which is currently in operation. Thus far, all atmospheric tests in this rig have been completed. Investigations under reactor temperature and pressure, followed by endurance tests, are under way. All tests to date have shown a reliable functioning of the hydraulic drive, including a novel ultrasonic position indication system.