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A condition-based maintenance model for gamma deteriorating system under continuous inspection is studied. This methodology uses a gamma distribution to model the material degradation, and the impact of imperfect maintenance actions on the system reliability is investigated. The state of a degrading system immediately after the imperfect maintenance action is assumed as a random variable and the maintenance time follows a geometric process. Furthermore, the explicit expressions for the long-run average cost and availability per unit time of the system are evaluated, an optimal policy (ξ∗) could be determined numerically or analytically according to the optimization model. At last, a numerical example for a degrading system modeled by a gamma process is presented to demonstrate the use of this policy in practical applications.