A real-world distributed system is rarely implemented as a standalone monolithic system. Instead, it is composed of multiple independent interacting components that together ensure the desired system-level specification. One can scale systematic testing to large, industrial-scale implementations by decomposing the system-level testing problem into a collection of simpler component-level testing problems. This paper proposes techniques for compositional programming and testing of distributed systems with two central contributions: (1) We propose a module system based on the theory of compositional trace refinement for dynamic systems consisting of asynchronously-communicating state machines, where state machines can be dynamically created, and communication topology of the existing state machines can change at runtime; (2) We present ModP, a programming system that implements our module system to enable compositional reasoning (assume-guarantee) of distributed systems. We demonstrate the efficacy of our framework by building two practical fault-tolerant distributed systems, a transaction-commit service and a replicated hash-table. ModP helps implement these systems modularly and validate them via compositional testing. We empirically demonstrate that the abstraction-based compositional reasoning approach helps amplify the coverage during testing and scale it to real-world distributed systems. The distributed services built using ModP achieve performance comparable to open-source equivalents.