A continuous adjoint approach for obtaining sensitivity derivatives on unstructured grids is developed and analyzed. The derivation of the costate equations is presented, and a second-order accurate discretization method is described. The relationship between the continuous formulation and a discrete formulation is explored for inviscid, as well as for viscous¯ow. Several limitations in a strict adherence to the continuous approach are uncovered, and an approach that circumvents these diculties is presented. The issue of grid sensitivities, which do not arise naturally in the continuous formulation, is investigated and is observed to be of importance when dealing with geometric singularities. A method is described for modifying inviscid and viscous meshes during the design cycle to accommodate changes in the surface shape. The accuracy of the sensitivity derivatives is established by comparing with ®nite-dierence gradients and several design examples are presented. #