Preliminary design is recognized as a vitally important but poorly understood engineering activity. The primary objectives of this research are to provide an improved understanding of the use of interative processes for preliminary design and to facilitate the development of computer tools to support preliminary design activities. The research focuses on the following three key issues: (1) the selection and representation of suitable features and other attributes describing partial design states, (2) the evaluation of partial designs, and (3) the generation of promising design actions. The research approach involves the following four phases: (1) development of conceptual framework, (2) implementation of this framework in a knowledge-based design system, (3) computational explorations using this design system, and (4) organization, evaluation and generalization of results. The research is expected to provide significant new insights strengthening the foundation of design theory, to support further research into improved processes for preliminary design and to support development of better computer aided design tools for industry.