The degradation of a tool component at an upstream station may cause the deterioration of the dimensional quality of a downstream workpiece. Meanwhile, the tool failure and its induced system reliability are affected by the incoming product quality from an upstream station. Quality and reliability interaction is thus introduced to address this interdependence in the reliability modeling and analysis of a multi-station manufacturing system. Moreover, an innovative quality and reliability integrated model is developed to describe the complicated propagation and transmission process of the interaction, as well as the information integration between the tool reliability and the product quality across the stations. Three factors are incorporated into the model, namely the tool degradation, the product quality, and the tool failure. An industrial case of a four-station machining process is used to demonstrate the importance and effectiveness of the proposed analytical procedures. Results indicate that the system reliability will be evidently overestimated without consideration of the quality and reliability interaction. Moreover, the presented integrated model suggests early maintenance schedule for the tool failure and its associated machine downtime.