System Dynamics is a required coursed offered to junior Mechanical Engineering students at Pennsylvania State University Erie, the Behrend College. It addresses the intercoupling dynamics of a wide range of dynamic systems: mechanical, electrical, fluid, hydraulic, electromechanical, biomedical, etc. It is a challenging course due to the abstract nature and increased mathematics needed to understand the topic. While hands-on experience can be a useful tool in learning the material, the ready to use units in the market are costly. This paper explores the applications of using low cost LEGO® MINDSTORMS® NXT kits to add hands-on experience for an undergraduate Systems Dynamics course. The labs include (1) time response of a first order system and transfer function identification and verification, (2) time response of a second order system, and (3) PD controller design. These lab activities use MATLAB®/Simulink® to study the response of LEGO MINDSTORMS units. Technical surveys before and after each lab have been analyzed and show that there is an improvement in students' confidence in topics from system dynamics with the labs. These three lab activities will evolve into two 2-hour labs of a one-credit lab course, Dynamics and Vibration, to be offered in Fall 2016. This lab course will complement the current courses in dynamics and vibration, attracting mechanical engineering students to pursue future careers in the field of dynamics and controls.