Abstract: A transferable hybrid method for prognostics of engineering systems based on fundamental degradation modes is provided. The method includes developing a degradation model that represents degradation modes shared in different domains of application through the integration of physics and machine learning. The system measures sensor signals and data processing provides for extracting health indicators correlated with the fundamental degradation modes from sensors data. For the integration of physics and machine learning, the degradation mode is separated into different phases. Before the accelerated degradation phase of a system, the method is looking out to detect when the accelerated phase begins. When accelerated phase is active, the system applies a machine-learning model to provide information on the accelerated degradation phase, and evolves the degradation towards a failure threshold in a simulation of the updated physics-based model to predict the degradation progression.