The complexity of present day embedded systems (continuous processes contro
lled by digital processors), and the increased demands on their reliability
motivate the need for monitoring and fault isolation capabilities in the e
mbedded processors. This paper develops monitoring, prediction, and fault i
solation methods for abrupt faults in complex dynamic systems. The transien
t behavior in response to those faults is analyzed in a qualitative framewo
rk using parsimonious topological system models. Predicted transient effect
s of hypothesized faults are captured in the form of signatures that specif
y future faulty behavior as higher order time-derivatives. The dynamic effe
cts of faults are analyzed by a progressive monitoring scheme till transien
t analysis mechanisms have to be suspended in factor of steady state analys
is. This methodology has been successfully applied to monitoring of the sec
ondary sodium cooling loop of a fast breeder reactor.