- Lt. Jeannie Flynn-Leavitt graduated with a Bachelor of Science degree in Aerospace Engineering from the University of Texas at Austin. She would later become the first woman selected for U.S. Air Force combat pilot training.
- Drs. Robert Bishop and Richard Schapery joined the department faculty.
- Dr. Hans Mark resigned as Chancellor of the University of Texas System and joined the ASE department full-time.
- The Center for Mechanics of Solids, Structures, and Materials was established. The Computational Fluid Dynamics Laboratory was established by Dr. Graham Carey in order to promote teaching and research specialization in this area.
- NASA astronaut Stephanie Wilson graduated with a Master’s of Science in Aerospace Engineering. She later became the first female astronaut from the University of Texas at Austin and served onboard NASA’s STS-121, a return-to-flight test mission.
- Drs. Noel Clemens, Leszek Demkowicz, and David Goldstein joined the department faculty.
- The Computational Fluid Physics Laboratory was established by Dr. David Goldstein.
- The Flowfield Imaging Lab was established by Dr. Noel Clemens.
- The Texas Institute for Computational Mechanics (TICOM) was renamed the Texas Institute for Computational and Applied Mathematics (TICAM).
- Dr. David Dolling assumed chairmanship of the department.
- Dr. Thomas Hughes was inducted into the National Academy of Engineering.
- New interdisciplinary graduate degree programs in Computational and Applied Mathematics (CAM) leading to the degrees of Doctor of Philosophy and Master’s of Science in Computational and Applied Mathematics were approved.
- Drs. Ivo Babuska, Clint Dawson, and Mary Wheeler joined the department faculty.
- Dr. Wallace Fowler was inducted into the University of Texas Austin Academy of Distinguished Teachers.
- Dr. Mary Wheeler was inducted into the National Academy of Engineering.
- Drs. Maruthi Akella and Glenn Lightsey joined the department faculty.