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The automotive industry is heading in the direction of signing off the exhaust system durability based on computer simulation rather than rig simulation and physical vehicle testing. This is due to the cost, time and availability of prototype vehicles and test track. Use of Finite Element Method (FEM) enables to assure the structural integrity of the exhaust system and also contribute to better understanding of the system behavior in the various operating conditions and evaluation of structural strength. This paper deals with dynamic analysis of a modular automotive exhaust system where it is directly mounted on power train pack. Selection of dynamic loads, processing of the test data, and effect of assembly loads along with material property variation due to temperature are explained. It also includes validation of the CAE model, prediction of probable failure locations and improving the design based on analysis outcome.