This book constitutes the refereed proceedings of the Second International Conference on Formal Methods in Computer-Aided Design, FMCAD '98, held in Palo Alto, California, USA, in November 1998. The 27 revised full papers presented were carefully reviewed and selected from a total of 55 submissions. Also included are four tools papers and four invited contributions. The papers present the state of the art in formal verification methods for digital circuits and systems, including processors, custom VLSI circuits, microcode, and reactive software. From the methodological point of view, binary decision diagrams, model checking, symbolic reasoning, symbolic simulation, and abstraction methods are covered.