The transition from high-level to low-level design is a labour-intensive and time-consuming activity since it involves many iterations over design models to obtain a well-designed system. Moreover, it requires the knowledge and expertise of experienced developers. Design patterns provide proven design knowledge by capturing successful solutions to recurring problems which arise when building software systems. To transfer this design knowledge into detailed design, methodological support is needed. We provide such support with patternbased re®nement schemas.In this paper, we present a pattern-based approach to the correct stepwise re®nement of UML static and dynamic design models by application of re®nement schemas. A re®nement schema is composed of two compartments. The ®rst compartment describes the abstract model of the design, whereas the second compartment shows its corresponding detailed model after transformation and instantiation of one design pattern. We also propose a number of smaller transformations called micro-re®nements whose correctness is proven. These microre®nements can be composed into sequences to produce correct re®nement schemas. Our approach will allow for the construction of intelligent CASE tools that provide automatic support for the selection, management, and application of design patterns for the re®nement of design models. Such tool support will enable effective design knowledge transfer. q