A method and system for streaming software applications to a client uses an application server having a library with the application files stored therein. A streaming manager is configured to send the application files to a client as a plurality of streamlets, each streamlet corresponding to a particular data block in a respective application file. A streaming prediction engine is provided to identify at least one streamlet which is predicted to be most appropriate to send to a given client at a particular time in accordance with a prediction model reflecting the manner in which the application files are loaded and used by the application. In the preferred implementation, the application files are preprocessed and stored as a set of compressed streamlets, each of which corresponds to a file data block having a size equal to a code page size, such as 4k, used during file reads by an operating system expected to be present on a client system. In addition, the server is configured to send a startup block to a new streaming client containing a file structure specification of the application files and a set of streamlets comprising at least those streamlets containing the portions of the application required to enable execution of the application to be initiated.