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A gas path analysis approach of dynamic modelling was used to examine the gas turbine performance. This study presents an investigation of the effect of physical faults on the performance of a three-shaft gas turbine at full-load and part-load operation. A nonlinear steady state performance model was developed and validated. The datasheet from the engine manufacturer was used to gather the input and validation data. Some engineering judgement and optimization were used. Following validation of the engine performance model with the engine manufacturer data using physical fault and component health parameter relationships, physical faults were implanted into the performance model to evaluate the performance characteristics of the gas turbine at degradation state at full- and part-load operation. The impact of erosion and fouling on the gas turbine output parameters, component measurement parameters, and the impact of degraded components on another primary component of the engine have been investigated. The simulation results show that the deviation in the output parameters and component isentropic efficiency due to compressor fouling and erosion is linear with the load variation, but it is almost nonlinear for the downstream components. The results are discussed following the plots.