The Ballymoney man was nursing a minor wrist injury after a slip-off at Kirkistown in Co. Down and had to undergo a medical on Monday before being cleared to race.
However, the 30-year-old showed no ill-effects as he finished second fastest on the Tyco BMW Superbike, only half-a-second back on Dean Harrison.
Dunlop, who hasn’t raced on the roads since last year’s Senior TT, was third on his MD Racing BMW Superstock machine and fourth on his 600 Honda.
It was a performance that left Tyco BMW team co-owner Hector Neill all smiles as the Isle of Man TT looms on the horizon.
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Neill said: “We’ve done quite a bit of testing and unfortunately he got the wrist injury, but it’s not putting him off any.
“He’s in good form and the bikes are good. We’ve done a bit of testing and got the bike the best we’ve had it and he’s liking it, so things are looking good for us.
“It’s nice to have Michael back in with us again and he’s sort of the last of the dynasty. I’d love to see him get a win to tell you the truth.”