Reliability analysis using error probabilities for combinational logic circuits has been investigated widely in the literature. Reliability analysis for sequential logic circuits using these methods would be inaccurate because of existence of loops in their architecture. In this paper a new method based on conversion of sequential circuit to combinational one and applying an iterative reliability analysis is developed. A Monte Carlo method-based reliability analysis is introduced for sequential circuits, which is used for first method validation. Experimental results demonstrate good accuracy of the method.