System-on-Chip (SoC) and other complex distributed hardware/software systems contain heterogeneous components whose behavior are best captured by different models of computations (MoCs). As a result, any system design framework for such systems requires the capability to express heterogeneous MoCs. Although a number of system level design languages (SLDL)s and frameworks have proliferated over the last few years, most of them are lacking in multiple ways. Some of the SLDLs and system design frameworks we have worked with are SpecC, Ptolemy II, SystemC-H, etc. From our analysis of these, we identify their following shortcomings: First, their dependence on specific programming language artifacts (Java or C/C++) make them less amenable to formal analysis. Second, the refinement strategies proposed in the design flows based on these languages lack formal semantics underpinnings making it difficult to prove that refinements preserve correctness, and third, none of the available SLDLs are easily customizable by users. In our work, we address these problems as follows: To alleviate the first problem, we follow Axel Jantsch's paradigm of function-based semantic definitions of MoCs and formulate a functional programming framework called SML-Sys. We illustrate through a number of examples how to model heterogenous computing systems using SML-Sys. Our framework provides for formal reasoning due to its formal semantic underpinning inherited from SML's precise denotational semantics. To handle the second problem and apply refinement strategies at a higher-level, we propose a refinement methodology and provide a semantics preserving transformation library within our framework. To address the third shortcoming, we have developed EWD, which allows users to customize MoC-specific visual modeling syntax defined as a metamodel. EWD is developed using a metamodeling framework GME (Generic Modeling Environment). It allows for automatic design-time syntactic and semantic checks on the models for conformance to their metamodel. Modeling in EWD facilitates saving the model in an XML-based interoperability language (IML) we defined for this purpose. The IML format is in turn automatically translated into Standard ML, or Haskell models. These may then be executed and analyzed either by our existing model analysis tools SMLSys, or the ForSyDe environment. We also generate SMV-based template from the XML representation to obtain verification models. / Master of Science