A method, system and computer program product for X-Saturated ternary simulation based reduction. An X-Saturated ternary simulation (XSTS) utility, which executes on a computer system, receives design information, where the design information includes a netlist. The XSTS utility initializes one or more data structures and/or variables and simulates, in a ternary fashion, the netlist at a time value by applying logical X values to all RANDOM gates of the netlist and to registers marked X_SATURATED. For each register of the netlist XSTS utility: determines whether or not the register departs from its expected prefix behavior, and if the register departs from its expected prefix behavior, the register is marked as X_SATURATED and the current state is updated with an X value upon the register. XSTS utility can store the current state in a data structure and can use the information from the data structure to simplify the design.