AbstractModel‐Based Systems Engineering (MBSE) in a modeling and simulation approach has emerged as a critical approach for designing and managing complex systems. While traditionally applied to product development, its application to Industrial systems (e.g. Manufacturing, Supply chain) is even more important from complexity and lifecycle costs consideration. This paper explains the challenges and the benefits of MBSE for Industrial system. It develops the key systems / methodological concepts to develop Industrial Systems, in a context of a co‐engineering with end‐product systems. It will be illustrated on a commercial aircraft manufacturing system use case from industrial network system up to a production line system.