Oscillator phase noise has a negative effect on the tracking performance of Global Navigation Satellite System (GNSS) receivers. To provide GNSS software receivers with real test environments, this paper proposes a method to simulate the GNSS Intermediate Frequency (IF) signal, taking the oscillator phase noise effect into consideration. The oscillator parameters are first measured via a pseudolite transmitter and receiver system. According to the measured oscillator parameters, an oscillator-induced frequency fluctuation is then generated, and added to the digital IF signal. Further simulation experiments are conducted that attempt to measure the oscillator phase noise effect on a second-order Phase Lock Loop (PLL) performance. Results indicate that the IF signal simulator considering the oscillator phase noise is able to provide software receivers with real signal dynamics, helping to evaluate the performance of signal processing algorithms on a software platform.