Data from the steady-state operation of gas turbine engines are used in gas path diagnostic procedures. A method to identify steady-state operation is thus required. This paper initially explains and demonstrates the factors that cause a deviation in engine health when transient data are used for diagnosis and shows that there is a threshold in the slope of time traces, below which the variation in engine health parameters is acceptable. A methodology for deriving a criterion for steady-state operation based on actual flight data is then presented. The slope of the exhaust gas temperature variation with time and the size of its time-series window, from which this slope is determined, are the required parameters that must be specified when applying this criterion. It is found that the values of these parameters must be selected so that a sufficient number of steady-state points are available without compromising the accuracy of the diagnostic procedure.