One of the most useful tools available for the purpose of formation evaluation is the transient pressure test. Basically, this test requires that the flow rate of a well be changed and that the associated change in bottomhole pressure be measured as a function of time. Proper interpreta- tion of the resulting data can yield information necessary for a comprehensive program of reservoir analysis. The primary objective of this paper is to review the most successful method of transient pressure analysis for the purpose of evaluating reservoir flow capacity, formation damage, and reservoir fluid pressure. Examples of these determinations are presented.