In this paper we propose a method for generating reduced models for a class of nonlinear dynamical systems, based on truncated balanced realization (TBR) algorithm and a recently developed trajectory piecewise-linear (TPWL) model order reduction approach. We also present a scheme which uses both Krylov-based and TBRbased projections. Computational results, obtained for examples of nonlinear circuits and a micro-electro-mechanical system (MEMS), indicate that the proposed reduction scheme generates nonlinear macromodels with superior accuracy as compared to reduction algorithms based solely on Krylov subspace projections, while maintaining a relatively low model extraction cost. Categories and Subject Descriptors