Model-based test generation by model checking is a well-known testing technique that, however, suffers from the state explosion problem of model checking and it is, therefore, not always applicable. In this paper, we address this issue by decomposing a system model into suitable subsystem models separately analyzable. Our technique consists in decomposing that portion of a system model that is of interest for a given testing requirement, into a tree of subsystems by exploiting information on model variable dependency. The technique generates tests for the whole system model by merging tests built from those subsystems. We measure and report effectiveness and efficiency of the proposed decomposition-based test generation approach, both in terms of coverage and time. Index Terms-model-based testing, test case generation, model checking, state explosion problem, decomposition. ! ‚ Θ " tv 1 " e 0 1 ,. .. , v n " e 0 n u is the set of initial assignments; e 0 i can contain only variables of V. Terms e i and e 0 i in next and initial assignments may contain conditional expressions. We assume that G may contain a predefined function randompDq, randomly returning a value taken from domain D.