This paper demonstrates the use of a real time lock-in thermography (LIT) system to non-destructively characterize thermal events prior to the failing of an integrated circuit (IC) device. A case study using a packaged IC mounted on printed circuit board (PCB) is presented. The result validated the failing model by observing the thermal signature on the package. Subsequent analysis from the backside of the IC identified a hot spot in internal circuitry sensitive to varying value of external discrete component (inductor) on PCB.