The transonic aerodynamic characteristics for high-performance aircraft are significantly affected by shock induced flow interactions as well as other local flow interference effects which usually occur at transonic speeds. These adverse interactions can not only cause high drag, but can cause unusual aerodynamic loadings and/or severe stability and control problems. Many new programs are underway to develop methods for reducing the adverse effects, as well as to develop an understanding of the basic flow conditions which are the primary contributors. It is anticipated that these new programs will result in technologies which can reduce the aircraft cruise drag through improved integration as well as increased aircraft maneuverability through the application of thrust vectoring. This paper will identify some of the primary propulsion integration problems for high performance aircraft at transonic speeds, and demonstrate several methods for reducing or eliminating the undesirable characteristics, while enhancing configuration effectiveness.