An on-line operational margin monitoring system has been developed for boiling water reactor power plants to improve safety, reliability, and quality of reactor operation. The system consists of a steady-state core status prediction module, a transient analysis module, a stability analysis module, and an evaluation and guidance module. This system quantitatively evaluates the thermal margin during abnormal transients as well as the stability margin, which cannot be evaluated by direct monitoring of the plant parameters, either for the current operational state or for a predicted operating state that may be brought about by the intended operation. This system also gives operator guidance as to appropriate or alternate operations when the operating state has or will become marginless.