This paper proposes a new model that generalizes the linear multi‐state sliding window system to the case of m consecutive overlapping windows. In this model the system consists of n linearly ordered multi‐state elements. Each element can have different states: from complete failure up to perfect functioning. A performance rate is associated with each state. The system fails if in each of at least m consecutive overlapping groups of r consecutive elements (windows) the sum of the performance rates of elements belonging to the group is lower than a minimum allowable level. An algorithm for system reliability evaluation is suggested which is based on an extended universal moment generating function. Examples of evaluating system reliability and elements' reliability importance indices are presented.