Diagnosis and prognosis are necessary tasks for system re- configuration and fault-adaptive control in complex systems. Diagnosis consists of detection, isolation and identification of faults, while prognosis consists of prediction of the remain- ing useful life of systems. This paper presents a novel inte- grated framework for model-based distributed diagnosis and prognosis, where system decomposition is used to enable the diagnosis and prognosis tasks to be performed in a distributed way. We show how different submodels can be automati- cally constructed to solve the local diagnosis and prognosis problems. We illustrate our approach using a simulated four- wheeled rover for different fault scenarios. Our experiments show that our approach correctly performs distributed fault diagnosis and prognosis in an efficient and robust manner.