Abstract: Application performance tuning and benchmarking is performed to ensure that performance of an application being monitored is matching a target performance level. State of the art systems fail to consider various dynamic performance characteristic of the application. The disclosure herein generally relates to software performance management, and, more particularly, to a method and system for performance management of distributed software applications. The system determines a context (which captures static and dynamic characteristics of the application) of the application, and based on the context the application is subject to various load conditions to measure performance. Further, tuning is done if the measured performance is not matching the target performance, to improve the performance of the application.