A new reliability model for dependent competing failure processes is proposed. The reliability model uses the generalized Polya process (GPP) to model the arrival of shocks and considers the degradation rate change. Most systems fail due to performance degradation and external environment shocks. On the one hand, soft failure occurs when the total amount of degradation, including continuous degradation and sudden degenerate increment, exceeds the soft failure threshold level. On the other hand, hard failure occurs when the time interval between two successive shocks is less than the recovery time. As time progresses and natural degradation, the time for a system to recover from damage due to shocks tends to increase gradually. However, conventional models usually regard recovery time as a constant, unrealistic in many practical situations. For this purpose, an increment‐dependent shock process is considered. A hard failure reliability model with recovery time is calculated using the GPP to describe the shock arrival process. On this basis, combined with the deduced soft failure function, the analytical solution of the reliability model is obtained. Finally, a numerical example based on the micro‐electro mechanical systems is conducted to illustrate the effectiveness of the proposed model.