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Realistic background traffic is critical to the simulation platforms for autonomous driving (AD) testing. Given that most vehicles in reality are driven by human beings, introducing human driving (HD) vehicles to the background traffic is necessary to be able to discover more problems of the tested AD vehicle in the simulation stage. However, existing methods rely on ad-hoc rules or data-driven training to mimic partial human driver behaviors, which are not comprehensive and lack transparency. In this work, we design a smart human driving vehicle simulator HDSim which is empowered by cognitively inspired modeling and AI models. HDSim enables diverse, realistic, and scalable HD traffic simulation on AD testing platforms like CARLA in a non-intrusive manner. There are two novel components in HDSim. First, we introduce a driver model to guide the generation of diverse human driving styles by using different combinations of latent cognitive factors in a hierarchy. Second, we design a Perception-Mediated Behavior Influence (PMBI) mechanism to use LLM-assisted perceptual transformations to indirectly fuse driving actions with driving styles. Experiments show that HDSim traffic can help simulation platforms like CARLA to reveal 68% more failures of tested AD vehicles, and the explainability of reported accidents is also improved.