Improvement of physics-based identification, modeling and risk management of (transonic) flutter and limit-cycle oscillations of an aeroelastic system is a common interest for wide range of engineering applications and, thus is highly demanded. It will be demonstrated that the proposed methodologies have great potential for enhancing the physics-based identification, modeling and risk management of flutter and limit-cycle oscillations of an aeroelastic system. DoD components likely to have interests in the technology developed in this SBIR project are the US Air Force, Navy and Army. The US industrial companies, including various aerospace & ocean as well as general engineering companies such as Boeing, Pratt & Whitney, General Electric, General Dynamics, Lockheed Martin and Textron, will be the major non-military potential customers. In addition, the corresponding industrial companies in Europe and Asia represent a very large marketing share of the resulting methods and technologies. Installation of a prototype device in air vehicles to suppress transonic flutter and LCO and extend the flight envelope is highly demanded for safely operating civil as well as military aircrafts. The direct application of the SBIR effort to the current needs of NASA represents a prime opportunity for further product development and enhancement and represents a considerable potential revenue stream in engineering support, plus further technology acquisition.