Spaceborne computing systems must provide reliable, continuous operation for extended periods. Due to weight, power, and volume constraints, these systems must manage resources very effectively. A fault diagnosis algorithm is described which enables fast and flexible diagnoses in the dynamic distributed computing environments planned for future space missions. The algorithm uses a knowledge base that is easily changed and updated to reflect current system status. Augmented fault trees represented in an object-oriented form provide deep system knowledge that is easy to access and revise as a system changes. Given such a fault tree, a set of failure events that have occurred, and a set of failure events that have not occurred, this diagnosis system uses forward and backward chaining to propagate causal and temporal information about other failure events in the system being diagnosed. Once the system has established temporal and causal constraints, it reasons backward from heuristically selected failure events to find a set of basic failure events which are a likely cause of the occurrence of the top failure event in the fault tree. The diagnosis system has been implemented in Common LISP using Flavors.