The imaging payload of an EO satellite is required to obtain images of the earth's surface underneath, as per required in terms Of Spatial and spectral resolution. In general terms, the essential performance criterion for an imaging system is its MTF (Modulation Transfer Function). The MTF can be calculated for certain components of IP like for Optics, Imaging sensor and IP electronics. Whereas there are other components as well, which do contribute towards MTF. These are relative motion of the object and IP, as well as different illumination angles of the illuminator (Sun) on the surface of earth, thus contributing the blur and blooming effect In IP, which again potentially affects the measurement of MTF for the IP. In order to simulate this environment on ground to calibrate the MTF of the IP or any camera that is prepared for the use on an EO satellite, a flexible experimental setup has been devised and the results thereof have been presented, in this paper.