Future missions involving launch vehicle and space systems require available and reliable propulsion control systems. Availability is increased through health monitoring systems technology capable of first predicting and detecting faults and then expediting maintenance and repair. Advances in sensor, microelectronic and software technology permit increased system monitoring, failure prediction and detection within the propulsion system. These advances make it possible to design and develop distributed health management systems. Smart sensors, advanced processors, predictive diagnostic algorithms, and expert maintenance diagnostic systems have already been demonstrated. The development of computationally efficient data filtering and analysis algorithms will facilitate the integration of robust diagnostics within low-power microelectronics. Plans are in place to embed this software in smart sensor electronics.