AbstractThis paper describes a method for estimating and forecasting reliability from attribute data, using the binomial model, when reliability requirements are very high and test data are limited. Integer data—specifically, numbers of failures — are converted into non‐integer data. The rationale is that when engineering corrective action for a failure is implemented, the probability of recurrence of that failure is reduced; therefore, such failures should not be carried as full failures in subsequent reliability estimates. The reduced failure value for each failure mode is the upper limit on the probability of failure based on the number of successes after engineering corrective action has been implemented. Each failure value is less than one and diminishes as test programme successes continue. These numbers replace the integral numbers (of failures) in the binomial estimate.This method of reliability estimation was applied to attribute data from the life history of a previously tested system, and a reliability growth equation was fitted. It was then ‘calibrated’ for a current similar system's ultimate reliability requirements to provide a model for reliability growth over its entire life‐cycle. By comparing current estimates of reliability with the expected value computed from the model, the forecast was obtained by ex