This paper proposes a dynamic reliability analysis approach based on fault tree (FT) and new process capability index (PCI). This work has three contributions. First, new PCIs, namely, C p-R , C pk-R , C pm-R , and C pmk-R , are proposed on the basis of traditional PCI prototypes, and the data stability analysis results converge to (0∼1] interval. These new PCI advantages and defects are compared, and the result shows that C pmk-R can identify the stability of the dynamic data effectively. Second, fault risk index (FRI) based on C pmk-R index, namely, R pmk-R , is proposed to approximate the probability of basic events (BEs) for FT. Third, FRI and FT are used to analyze fault transmission and assess dynamic fault risk of equipment.A circulating cooling water heat exchange system is used for simulation to verify the practicability of the approach. Results show that the FT based on R pmk-R can assess the dynamic fault risk of equipment accurately.