Traditional test generation techniques for digital circuits have been rendered inadequate by the increasing levels of integration achieved by VLSI technology. This thesis presents a test generation algorithm, the E-algorithm, that generates tests for circuits described using the VHDL Hardware Description Language. A fault model has been developed that addresses data path faults, faults in control structures, and faults in functional operators. The E-algorithm is able to generate tests for all modeled fault types, and handles a wide variety of circuit types, including sequential circuits. The algorithm has been implemented; preliminary results are given. / Master of Science