This paper describes an automatic interface insertion scheme for in-system verification of algorithm models. To insert the interface, an algorithm model described in C is translated into another source code that includes the communication with hardware components in the target system to be validated with the algorithm model. The communication between the algorithm model and hardware components is achieved using transactors that perform transformation between access operations and bus cycle transactions. I/O terminal is introduced as an interface model to relate the transactions to access operations during the execution of the algorithm model, i.e., accesses to I/O terminals invoke bus cycle transactions in hardware and vice versa. An automatic interface insertion tool is developed using the source-to-source translation to identify the I/O terminals and insert interface function calls in the source code. The proposed automatic interface insertion scheme is validated by emulating several multimedia algorithms written in C on real target systems.