In this paper, a novel systematic model-based methodology for performing integrated process design and controller design (IPDC) for chemical processes is presented. The methodology uses a decomposition method to solve the IPDC typically formulated as a mathematical programming (optimization with constraints) problem. Accordingly the optimization problem is decomposed into four sub-problems: (i) pre-analysis, (ii) design analysis, (iii) controller design analysis, and (iv) final selection and verification, which are relatively easier to solve. The methodology makes use of thermodynamic-process insights and the reverse design approach to arrive at the final process design–controller design decisions. The developed methodology is illustrated through the design of: (a) a single reactor, (b) a single separator, and (c) a reactor–separator-recycle system and shown to provide effective solutions that satisfy design, control and cost criteria. The advantage of the proposed methodology is that it is systematic, makes use of thermodynamic-process knowledge and provides valuable insights to the solution of IPDC problems in chemical engineering practice.