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Digital twin, a concept introduced in 2002, is becoming increasingly relevant to systems engineering and, more specifically, to model-based system engineering (MBSE). A digital twin, like a virtual prototype, is a dynamic digital representation of a physical system. However, unlike a virtual prototype, a digital twin is a virtual instance of a physical system (twin) that is continually updated with the latter’s performance, maintenance, and health status data throughout the physical system’s life cycle. This paper presents an overall vision and rationale for incorporating digital twin technology into MBSE. The paper discusses the benefits of integrating digital twins with system simulation and Internet of Things (IoT) in support of MBSE and provides specific examples of the use and benefits of digital twin technology in different industries. It concludes with a recommendation to make digital twin technology an integral part of MBSE methodology and experimentation testbeds.