To improve software productivity, we have to stop developing applications from scratch and make use of exiting solutions that have been applied, tested, and proven useful in successful projects. Patterns promise new design reuse benefits early in the development lifecycle. To reap the benefits of deploying these proven design solutions, we need to define systematic development approaches to construct application designs using patterns. In this paper, we introduce a new Pattern-Oriented Analysis and Design (POAD) approach that utilizes patterns as building blocks (components) at the design level. The approach glues the design structure of patterns at various levels of abstraction for the purpose of developing pattern-oriented designs. The internal details of the pattern structure are hidden at high design levels (pattern views) and are traceable to lower design levels (class views). We describe the development phases and steps using a purpose/process/product template. We use a running example to describe the application of each step. The POAD approach produces hierarchical traceable design models that capture interaction between patterns.'