<p>Optimization and decision-making problems in the planning and scheduling of power systems, and more generally of engineering systems, are subject to high levels of uncertainty, must accommodate multiple (often conflicting) objectives, and involve complex competitive and cooperative interactions among different decision makers. Such problems are representative in engineering design and are difficult to address using conventional optimization methods. Inspired by Qian Xuesen’s development of engineering cybernetics from Wiener’s feedback-based cybernetics, the authors have proposed engineering game theory, whose core idea is to reconcile conflicts via game-theoretic equilibrium, opening a new avenue for optimal decision making in complex large-scale systems. This paper presents the fundamental principles, mathematical models, and engineering applications of engineering game theory, aiming to provide a general paradigm and reference for decision-making problems encountered in engineering practice.</p>