Use mksdcard <size in MB> <filename> for creating a FAT32 image of a SD card.
For example, mksdcard 1024M sd_card
To make sure the image is used with the emulator, launch the emulator with -sdcard <path/filename> option.
On Eclipse, this can be done by going to “Run > Open Run Dialog”, in the “Target” tab,
add the option in the “Additional Emulator Command Line Options” :
For adding/removing files from the sd card, you can use the DDMS view in Eclipse or use the command,
adb push <source path> /sdcard/
Emulate SD card using mksdcard Tool
mksdcard <size> <file>
For example: mksdcard 2048M sdcard.iso
This is a simple step to emulate your SD card. If you have any queries in terms of SD card emulation you can drop your question in the comment section below. For more information check out this guide.