The field of large-scale electrical energy storage is growing rapidly in both academia and industry, which has driven a fast increase in the research and development on adiabatic compressed air energy storage. The significant challenge of adiabatic compressed air energy storage with its thermal energy storage is in the complexity of the system dynamic characteristics arising from the multi-physical (pneumatic, thermal, mechanical and electrical) processes. This has led to a strong demand for simulation software tools specifically for dynamic modelling and transient control of relevant multi-scale components, subsystems and whole systems with different configurations. The paper presents a feasibility study of a simulation tool development implemented by the University of Warwick Engineering team to achieve this purpose. The developed tool includes a range of validated simulation models from the fields of pneumatics, thermodynamics, heat transfer, electrical machines and power grids. The structure of the developed tool is introduced and a component library is built up on the Matlab/Simulink platform. The mathematical descriptions of key components are presented, which precedes a presentation of four case studies of different applications. The case studies demonstrate that the simulation software tool can be used for dynamic modelling of multi-scale adiabatic compressed air energy storage components and systems, real performance analysis, dynamic control strategy implementation and feasibility studies of applications of adiabatic compressed air energy storage integrated with power grids. The paper concludes that the continued development and use of such a tool is both feasible and valuable.