A new computer-based approach to teaching thermodynamics is being developed and tried by two mechanical engineering professors at the U.S. Naval Academy. The course uses sophisticated software, in this case CyclePad, to work all of the homework problems. A new text, written with traditional theory but computer-based problems, accommodates the new approach. The new course is scheduled for Fall Term 2001 at the Naval Academy. Computer-based thermodynamics courses teach the same theory as traditional thermodynamics courses as well as the same types of problems. However, traditional thermodynamic cycle hand calculations are replaced by cycle calculations using CyclePad. This new example of Intelligent Computer-Assisted Instruction, ICAI, switches emphasis from learning cycle calculations to learning cause and effect through parametric analysis. Parametric analysis is made feasible through experimentation using computer models. For this, CyclePad has artificial intelligence, sensitivity analysis and graphical presentation capabilities. Traditionally, thermodynamics culminates in analysis of the thermodynamic cycles. In this course, students will progress well beyond traditional thermodynamics courses by emphasizing cycle analysis.