A set of water powered excavation test system was developed for the comprehensive performance testing and evaluation of water powered percussive rock drill indoors. The whole system contains hydraulic power section, electronic control system, test and data acquisition system, and assistant devices, such as guideway and drilling bench. Parameters of the water powered percussive rock drill can be obtained by analyzing testing data, which contain impact energy, front and back cavity pressure, pressure and flow in each working part, drilling velocity, frequency and energy efficiency etc. The system is applied to test the self-designed water powered percussive rock drill SYYG65. The parameters of water powered percussive rock drill with impact pressure of about 8.9 MPa are 58.93 J for impact energy, and 8.97% for energy efficiency, which prove the effectiveness of system.