Thermal design in sub-100nm technologies will become one of the major challenges to the CAD community. Using temperature as a guideline for design is very important at sub-100nm. In this paper, we first introduce the idea of temperature-aware design. We then propose a compact thermal model which can be integrated into modern CAD tools to achieve a temperature-aware design. Finally, we use the compact thermal model in a microprocessor design case study to show the importance of using temperature as a guideline for the design. Results from our thermal model show that temperature-aware design approach can provide more accurate design estimations, and therefore better design decisions and faster design convergence.