The paper presents recent developments in a singular perturbation meth
od, known as the ''Lie transformation method'' for the analysis of non
linear dynamical systems having chaotic behavior. A general approximat
e solution for a system of first-order differential equations having a
lgebraic nonlinearities is introduced. Past applications to simple dyn
amical nonlinear models have shown that this method yields highly accu
rate solutions of the systems. In the present paper the capability of
this method is extended to the analysis of dynamical systems having ch
aotic behavior: indeed, the presence of ''small divisors'' in the gene
ral expression of the solution suggests a modification of the method t
hat is necessary in order to analyze nonlinear systems having chaotic
behavior (indeed, even non-simple-harmonic behavior). For the case of
Hamiltonian systems this is consistent with the KAM (Kolmogorov-Arnold
-Moser) theory, which gives the limits of integrability for such syste
ms; in contrast to the KAM theory, the present formulation is not limi
ted to conservative systems. Applications to a classic aeroelastic pro
blem (panel flutter) are also included.