The high complexity and multiscale nature of many engineered systems—such as those in nuclear power plants—make representing and forecasting their dynamic behavior challenging. Physics-based models can be overly complex and computationally intractable, whereas machine learning (ML) tools are often data-hungry and prone to unphysical solutions. This study proposes a knowledge-informed ML-aided hybrid residual modeling approach that offers accurate and efficient time series forecasting for the operation of dynamical engineered systems. Hybrid residual modeling entails a baseline solution from domain knowledge and known physics expressions about the system dynamics integrated with an ML model to capture undiscovered information from the mismatch (i.e., residuals) between true states from measurements and baseline-predicted outputs. This study further quantifies the ML model uncertainty to provide trustworthy solutions. Real-time operational data from thermal-hydraulic flow loops of the cryogenic moderator system in Oak Ridge National Laboratory’s Spallation Neutron Source facility were used to demonstrate the potential of knowledge-informed uncertainty-aware ML in real-world applications. The state variables of the cryogenic helium loop were modeled with (1) first principles–based system identification (sysID), (2) long short-term memory (LSTM) neural network, and (3) hybrid sysID (baseline) + LSTM (residual). The superior predictive capability of the sysID+LSTM model versus stand-alone sysID and LSTM is confirmed by average performance metrics and individual data points across different prediction horizons. By creating a robust representation of the underlying physical system, the widely applicable hybrid residual modeling approach will enable the future development of digital twins for performance prediction, prognostics, and operation control.