This paper presents an algorithm for automatically generating UML statecharts from a collection of UML sequence diagrams. Computer support for this transition between requirements and design is important for a successful application of UML's highly iterative, distributed software development process. There are three main issues which must be addressed when generating statecharts from sequence diagrams. Firstly, con icts arising from the merging of independently developed sequence diagrams must be detected and resolved. Secondly, di erent sequence diagrams often contain identical or similar behaviors. For a true interleaving of the sequence diagrams, these behaviors must be recognized and merged. Finally, generated statecharts usually are only an approximation of the system and thus must be hand-modi ed and re ned by designers. As such, the generated artifact should be highly structured and readable. In terms of statecharts, this corresponds to the