Abstract: In today’s competitive market designing of digital systems (hardware as well as software) faces tremendous challenges. In fact, notwithstanding an ever decreasing project budget, time to market and product lifetime, designers are faced with an ever increasing system complexity and customer expected quality. The above situation calls for better and better formal verification techniques at all steps of the design flow. This special issue is devoted to publishing revised versions of contributions first presented at the 12th Advanced Research Working Conference on Correct Hardware Design and Verification Methods (CHARME) held 21–24 October 2003 in L’Aquila, Italy. Authors of well regarded papers from CHARME’03 were invited to submit to this special issue. All papers included here have been suitably extended and have undergone an independent round of reviewing.