Applying finite element approximation to basic equations of pipeline dynamics, we propose an optimized finite element model written as a state space equation having a state variable vector of flows and pressures at intersecting grid points. The model accepts various forms of friction. We propose an augmented model including unsteady laminar friction rewritten as a state space equation. A model generator program is developed to calculate coefficient matrices of the state space equation of the model. Using the program, the model is compatible with block-diagram-based simulation software. Use of the model is shown by experiment and simulation examples. Transient pressures of a closed-end pipe were measured experimentally and used to validate simulated results of the optimized finite element model. Fuel injection was simulated using commercial simulation software to demonstrate model use.