The increasing complexity of hardware designs makes functional verification a challenge. The key issue of the state-of-the-art verification approaches is to obtain a “good” model for automated test generation or formal property checking. In this paper, we describe techniques for deriving EFSM-based models from HDL descriptions and briefly discuss applications of such models for verification. The distinctive feature of the suggested approach is that it automatically determines what registers of a design encode its state and use this information for model reconstruction.