Integrated engine exhaust systems and methods for reducing drag and thermal loads are disclosed. In one embodiment, a propulsion system includes an engine installation configured to be mounted on a wing assembly of an aircraft. The engine installation includes an engine, and an exhaust system operatively coupled to the engine. The exhaust system includes at least one nozzle configured to exhaust an exhaust flow from the engine. The nozzle includes a variable portion configured to vary an exit aperture of the nozzle from a first shape to a second shape to change a flowfield shape of at least a portion of the nozzle flowfield proximate the wing assembly, thereby reducing at least one of drag and thermal loading on the wing assembly. In a further embodiment, the exhaust system includes an inner nozzle that exhausts a core exhaust flow, and an outer nozzle that exhausts a secondary exhaust flow, the outer nozzle having the variable portion configured to vary the exit aperture of the outer nozzle.