The emulator includes first and second pipelined stages connected through a bidirectional bus for executing source instructions normally executed by a different/source computer in a highly overlapped manner. The first stage includes an emulator chip which performs the function of fetching and decoding each source instruction stored in cache memory resulting in the generation of a number of vector addresses required for executing the instruction by the second stage. The second stage includes a high performance microprocessor chip having on-chip instruction and data caches for storing a plurality of emulation subroutines and data fetched during subroutine execution. In pipelined fashion, the emulator chip fetches and decodes each source instruction which generates a vector branch address which is loaded into the branch vector register while the microprocessor chip fetches and executes emulation subroutines specified by the vector address transferred via the bus for each previously decoded source instruction.