ITSIE is an Interactive Tool for System Identification Education. The tool is developed using Sysquake, a Matlab-like language with fast execution and excellent facilities for interactive graphics, and is delivered as a stand-alone executable that is readily accessible to students and users. The tool supports the open-loop identification using classical prediction-error methods of 1) a SISO fifth-order system and 2) a fluidized bed calciner example characterized by a quasi-rational distributed system (link), both systems subject to multiple noise sources. The ability to evaluate externally-provided data sets is available in the interactive tool as well. The various stages of system identification, ranging from input signal design using PRBS and multisine signals through model validation are evaluated simultaneously and interactively in one screen. The highly visual and strongly coupled nature of system identification is very amenable to interactive tools, and the tool enables students to discover a myriad of important identification topics with a much lower learning curve than existing methods. Plans for additional tools in the series are considered.