Abstract This paper explains the On-board IVHM system for a State-Of-the-Art “All electric aircraft” and explores implementing practices for analysis based design, illustrations and development of IVHM capabilities. On implementing the system as an on board system will carry out fault detection and isolation, recommend maintenance action, provides prognostic capabilities to highest possible problems before these became critical. The vehicle Condition Based Maintenance (CBM) and adaptive control algorithm development based on an open architecture system which allow “Plug in and Plug off” various systems in a more efficient and flexible way. The scope of the IVHM design included consideration of data collection and communication from the continuous monitoring of aircraft systems, observation of current system states, and processing of this data to support proper maintenance and repair actions. Legacy commercial platforms and HM applications for various subsystems of these aircraft were identified. The list of possible applications was down-selected to a reduced number that offer the highest value using a QFD matrix based on the cost benefit analysis. Requirements, designs and system architectures were developed for these applications. The application areas considered included engine, tires and brakes, pneumatics and air conditioning, generator, and structures. IVHM design program included identification of application sensors, functions and interfaces; IVHM system architecture, descriptions of certification requirements and approaches; the results of a cost/benefit analyses and recommended standards and technology gaps. The work concluded with observations on nature of HM, the technologies, and the approaches and challenges to its integration into the current avionics, support system and business infrastructure. The IVHM design for All Electric Hybrid Wing Body (HWB) Aircraft has a challenging task of addressing and resolving the shortfalls in the legacy IVHM framework. The challenges like sensor battery maintenance, handling big data from SHM, On-Ground Data transfer by light, Extraction of required features at sensor nodes/RDCUs, ECAM/EICAS Interfaces, issues of certification of wireless SHM network has been addressed in this paper. Automatic Deployable Flight Data recorders are used in the design of HWB aircraft in which critical flight parameters are recorded. The component selection of IVHM system including software and hardware have been based on the COTS technology. The design emphasis on high levels of reliability and maintainability. The above systems are employed using IMA and integrated on AFDX data bus. The design activities has to pass through design reviews on systematic basis and the overall approach has been to make system highly lighter, effective “All weather” compatible and modular. It is concluded from the study of advancement in IVHM capabilities and new service offerings that IVHM technology is emerging as well as challenging. With the inclusion of adaptive control, vehicle condition based maintenance and pilot fatigue monitoring, IVHM evolved as a more proactively involved on-board system.