A technique is described for interpretation of IPTT tests. In one implementation, the technique may be configured or designed to standardize the complete interpretation procedure of IPTT in a heterogeneous reservoir, using if available, modern wireline logs (such as, for example, nuclear magnetic resonance and imaging), dynamic data from wireline formation testers and/or any other relevant information (such as, for example, geological description, core data and local knowledge) as constraints on the interpretation. Additionally, an iterative method may be used to define formation layering. An advanced regression technology may also be used to obtain optimized horizontal and vertical permeabilities of reservoir layers. Further a graphical user interface (GUI) based IPTT workflow technique of the present invention provides an integrated user-friendly interpretation platform for analyzing formation testing pressures and flow rate measurements in order to estimate the values and associated uncertainties of local characteristics of a hydrocarbon reservoir such as, for example, local permeability, local reservoir pressure, local compressibility, etc.