With the rapid development of nowadays technologies, the environment of product development is experiencing structural changes than ever. Manufacturers are put under never-experienced pressures to launch their products in the market both faster and less expensively than their competitors while continuously improving product quality These pressures have given birth to so-called, Concurrent Engineering which is a systematic approach to the integrated, concurrent design of products and their related processes, including manufacture and support. Most manufactiring companies now recognize the importance of concurrent engineering and put heavy emphasis on the research and impementation of concurrent engineering. However, with this fundamental change in the process of product development, designers rarely pay attention to this newly demanding process. Designers still stay in the middle of process, satisfying their roles in dealing with aesthetic points of product. Designers badly need to incorporate the concept of concurrent engineering to design to design process and to adapt to this new environment. With these backgrounds, the study sets the objective to understand the nature of concurrent engineering and explore the possibility of it's application to industrial design. Particularly this study focuses on how the concept of concurrent engineering can be applied from the stage of form development to prototyping. At first, background, objectives, and scope of the study are discussed as an introductory part. It is followed by reviewing theories of concurrent engineering such as definition, history, technologies, examples, state of art and so on. Subsequently industrial design is viewed in terms of concurrent engineering and problems in industrial design are identified. Base on the findinss of precedent part of study, new process of industrial design incorporating concurrent engineering is developed. For the demonstration of new process, a case study of design of palm-top printer is introduced. Case study shows how the sketch, and forms can be transformed into prototyping with the simultaneous cooperation with engineering and other related specialists. Finally the study in summarized and future studies are prospected.