The purpose of this paper is to present the model development process used to create a Functional Fault Model (FFM) of a liquid hydrogen (L H2) system that will be used for realtime fault isolation in a Fault Detection, Isolation and Recover (FDIR) system. The paper explains th e steps in the model development process and the data products required at each step, including examples of how the steps were performed fo r the LH2 system. It also shows the relationship between the FDIR req uirements and steps in the model development process. The paper concl udes with a description of a demonstration of the LH2 model developed using the process and future steps for integrating the model in a live operational environment