In 1999, we proposed the concept of a virtual gas turbine system which is a combination of turbine design and material design programs. Using this system, it has become possible to design a gas turbine engine and a combined cycle automatically, by inputting some basic information such as power output, turbine inlet temperature and material specifications. The derived outputs are turbine gas path dimensions, gas and cooling air flow rates, thermal efficiency, CO2 emissions, etc. We use the system to evaluate the potential improvement if a newly developed material is to be used in building the engine. Based on the virtual gas turbine system we have begun developing the virtual jet engine system, which can simulate the operation of a jet engine or a gas turbine engine to predict the degradation of materials used in the high temperature parts of the engine. The system consists of a thermal and aerodynamic analysis of the engine, a thermal and stress analysis of hot parts, and a material degradation analysis. Actual engine dimensions, operation data and material specifications are used to perform the analyses. In this paper, we will show some of the results of the use of the virtual gas turbine system, and then describe the development plan and the preliminary output of the virtual jet engine system.