A method and system for generating and managing virtual industrial devices in an industrial network is disclosed. The method includes capturing data packets associated with an ongoing industrial communication between an industrial application and an industrial device. The method further includes segregating the captured data packets into one or more requests and the one or more responses by analyzing information included in the data packets. The method also includes storing the one or more requests along with the one or more responses for the ongoing industrial communication in memory. The method includes dynamically generating a virtual industrial device emulating the industrial device based on the stored one or more requests and the stored one or more responses. The method includes establishing a communication session between the generated virtual industrial device and the industrial application for performing one or more test operations on the generated virtual industrial device.