Most of the traditional reliability models consider binary perspective assuming that any system and its components acquire two states: perfect function or complete failure. This assumption fails to address the real life scenario where majority of the systems degrade and undergo several intermediate states before reaching a state of complete failure. Given recent advances in assessing such multi-state systems including multi-component behavior, multi-state multicomponent (MSMC) reliability approach is gaining acceptance to ensure reliability and safety of complex engineered systems. While many methods have been developed for a wide range of MSMC systems, comparatively little research has examined the dependent behavior of system components along with their functional criticality in a system design. The proposed approach expands upon previous research by including dependent behavior of each component over other components in a multi-state system environment. In addition, a combined degradation effect, due to age of individual components in association with a correlative degradation effect of other components is examined. The obtained failure probability can be used to design a suitable replacement and maintenance function for any multicomponent system. Thus, the proposed framework will be able to address the challenge faced in modeling the functional and critical dependence of multiple components over each other for an MSMC system.