According to the problem of coordination in compound action of hydraulic excavator rotary and lifting, an experimental and simulation method was presented. AMESim simulation model was built according to the hydraulic system model; the simulation models of variable pump and hydraulic multiway directional valve were built by HCD library. Experimental data were inputted into simulation model, so the accuracy of the simulation model was verified through the comparison of the experimental results and the simulation results. The simulation model was improved according to the problems in the experiment. The initial experimental data were inputted into the improved simulation model. According to the compared result of original model and improved model, the coordination in compound action of excavator rotary and lifting is improved greatly.