This proposal aims to generalize the Stokesian dynamics formulation of fluids with particles, with a fresh theoretical approach and several new computer strategies. The multi- particle simulations will consider a variety of interparticle forces (Brownian, colloidal, external and hydrodynamical forces) and different length scales in the flow. Microstructural and macroscopic (rheology, diffusivity, etc.) properties will be determined under nonequilibrium flow conditions. It is expected that Stokesian simulations of systems with tens of thousands of degrees of freedom will be possible by using sparse matrix systems and parallel processing. This will make feasible quantitative predictions for real systems. The proposed research will provide basic understanding for design in processing of microstructured fluids, such as composite materials, polymers, ceramics, etc. Stokesian dynamics will be developed as a tool for other scientists and engineers.