The Dynamic Recursive Context for Finite State Machines (DRFSM) is a new methodology to represent and implement multi-level recursive processes using systematic implementation techniques. By multi-level process we mean any processing operations that are done repetitively with different parameters. DRFSM has proved to be a very efficient way to solve many complicated problems in the inspection paradigm using an easy notation and a straight forward implementation, especially for objects that have similar multi-level structures with different parameters. The main idea of the DRFSM is to reuse the conventional DEDS Finite State Machine for a new level after changing some of the transition parameters. After exploring this level, it will retake its old parameters and continue exploring the previous levels. Also, the implementation of such machines can be generated automatically by some modification to an existing reactive behavior design tool called GIJOE [4] that is capable of producing code from state machine descriptions (drawings) by adding a recursive representation to the conventional representation of finite state machines, and then generating the appropriate code for it.