This paper proposes a dynamic model with iron saturation to obtain better dynamic performance and more accurately steady-state performance than the dynamic model without iron saturation for the dual-stator brushless doubly-fed induction generator. Based on the proposed dynamic model, the MATLAB/SIMULINK model is established. The key to the simulation model considering iron saturation is that the magnetizing inductance can be updated for each simulation cycle. The magnetizing inductance used in the simulation is experimentally measured to guarantee the simulation accuracy. Dynamic simulations including the current, voltage, flux linkage, active power, and torque are performed, showing that the dynamic model considering iron saturation contributes to the merits of reducing the setting time and the oscillation amplitudes of the torque and the power in starting stage. Experimental assessment is carried out to verify the effectiveness of the theoretical analysis.