This paper reports the backgrounds, contents, and some experiences in establishing a graduate course on product design and development methodology at Department of Mechanical Engineering, Graduate School of Engineering, Osaka University. While product design and development are the key factors for success in manufacturing industry, the methodologies for enhancing their performance are not well known or utilized systematically among Japanese companies. On the other hand, engineering education at universities is now under the pressure for renovation, and a part of requirements focuses on integration of design or synthesis activities into education systems by means of the project-based learning paradigm. Under these factors, our department initiates a new graduate design course in the first semester of 2005. The course is composed of a series of lectures on design-for-X methodologies and projects on product design problems sponsored by industrial partners. Since this course has just started, it is not possible to evaluate its outcomes, but this paper reports the motivations, its position within the whole curriculum, course schedule, responses from manufacturing industry, issues on intellectual properties, etc.