This paper describes the teaming strategy between the U. S. Air Force’s two major propulsion test centers, Arnold Engineering Development Center (AEDC) and the Air Force Flight Test Center (AFFTC), to employ new modeling and simulation (M&S) techniques to reduce test cost and cycle time. With the long-term goal of developing joint ground/flight modeling and simulation capabilities, AEDC and AFFTC have teamed to apply these data analysis tools to two major propulsion flight test programs, the F-22 and the Joint Strike Fighter (JSF). The emphasis of this paper is on the development and application of a non-linear aerothermodynamic component-level model that serves as the basis for the model-based analysis and fault identification process. Model-to-data comparisons and model-based fault detection and analysis results for F-22/F119 propulsion ground and flight test are also presented for a variety of flight conditions.