This paper presents the architecture and synthesis of a damage-mitigating control system where the objective is to achieve high performance with increased reliability, availability, component durability, and maintainability. The proposed control system has a two-tier structure. In the lower tier, a linear sampled-data controller tracks a reference trajectory vector while the upper tier contains a fuzzy-logic-based damage controller which makes a trade-off between system dynamic performance and structural damage in critical component(s). The synthesis procedure is demonstrated on the model of a commercial-scale fossil-fueled power plant. Simulation results are presented which demonstrate the trade-off between plant dynamic performance and structural damage in a critical component.