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The classic modeling method based on s-parameter measurement cannot describe the nonlinear characteristic of the components accurately. Nonlinear scattering function model can describe the nonlinear characteristic from the perspective of qualitative and quantitative. In this paper, a new concept of nonlinear scattering function is presented. Based on harmonic balance analysis, nonlinear scattering function model for microwave power components is extracted. The analysis of a power MESFET is used here as a vehicle to illustrate the concept of nonlinear scattering function and the new modeling method.