In this paper, damage pre-cursors based residual life computation approach for various package elements to prognosticate electronic systems prior to appearance of any macro-indicators of damage has been presented. In order to implement the system-health monitoring system, precursor variables or leading indicators-of-failure have been identified for various package elements and failure mechanisms. Model-algorithms have been developed to correlate precursors with impending failure for computation of residual life. Package elements investigated include, first-level interconnects, dielectrics, chip interconnects, underfills and semiconductors. Examples of damage proxies include, phase growth rate of solder interconnects, intermetallics, normal stress at chip interface, and interfacial shear stress