A method of interactively achieving a Pareto-optimal design of systems is provided herein. The method includes the following stages: generating a system model containing elements that are associated with design parameters and design alternatives, as well as directives for calculating the system's measures of effectiveness (being the optimization objectives); exploring a plurality of design configurations all satisfying specified system constraints, meeting a Pareto optimal condition over the objective space, and representing different areas of the design and objective spaces; presenting a user with the determined set of design configurations; allowing the user to choose a range of interest, and repeating the exploring and presenting stages, wherein in each repetition, the exploring is carried out within a smaller sub-range, until the user makes a final selection of a design configuration.