A synergistic approach, using both test measurements and analytical model predictions, is outlined to accurately identify the dynamic characteristics of structural systems, more specifically, spacecraft systems. The test correlated dynamic model of the spacecraft structural system is in turn used for performing a detailed loads analysis of the coupled launch vehicle-spacecraft system, which verifies the integrity of spacecraft. A combination of error location procedure and parameter estimation method is used in correlating the finite element analytical model predictions with test measurements. Both frequency and mode shape correlations are imposed as direct requirements in the parameter estimation problem. The parameter estimation problem itself is solved using dynamic parameter sensitivities and mathematical programming methods. An interplanetary spacecraft design along with its test measurements is used in validating the proposed approach.