This Paper describes a historical view of the Aegis Combat System installed in DDG and CG ships of the US Navy and explains how this system has been designed and developed as a complete system, integrating state of the art SPY-1D (V) radar with computer programs and weapons systems. Specifically, the radar system, the command/decision system, the display system, the Education/training system, the vertical launching system, the weapon control system, and the computer programs, as part of the Aegis combat system, are described in regard to a generic design concept. This paper also provides an analysis of the capability of the Aegis Combat System to meet the blue navy operational requirements on several fronts, such as anti-air, surface, subsurface, and land-strikes. Especially the theater ballistic missile defense and self/area air defense capability of critical Aegis elements are discussed. In addition to overall system capabilities, the design concepts as well as the performance of the Aegis Combat System in independent or simultaneous operation are discussed. Relative to this, we focus on anti-air and theater ballistic missile defense capabilities in common naval warfare areas, such as surface, subsurface, amphibious and strike and how they can play a role in the effectiveness of Naval warfare.