Gas-path diagnostics is an essential part of gas turbine (GT) condition-based maintenance (CBM). There exists extensive literature on GT gas-path diagnostics and a variety of methods have been introduced. The fundamental limitations of the conventional methods such as the inability to deal with the nonlinear engine behavior, measurement uncertainty, simultaneous faults, and the limited number of sensors available remain the driving force for exploring more advanced techniques. This review aims to provide a critical survey of the existing literature produced in the area over the past few decades. In the first section, the issue of GT degradation is addressed, aiming to identify the type of physical faults that degrade a gas turbine performance, which gas-path faults contribute more significantly to the overall performance loss, and which specific components often encounter these faults. Abrief overview is then given about the inconsistencies in the literature on gas-path diagnostics followed by a discussion of the various challenges against successful gas-path diagnostics and the major desirable characteristics that an advanced fault diagnostic technique should ideally possess. At this point, the available fault diagnostic methods are thoroughly reviewed, and their strengths and weaknesses summarized. Artificial intelligence (AI) based and hybrid diagnostic methods have received a great deal of attention due to their promising potentials to address the above-mentioned limitations along with providing accurate diagnostic results. Moreover, the available validation techniques that system developers used in the past to evaluate the performance of their proposed diagnostic algorithms are discussed. Finally, concluding remarks and recommendations for further investigations are provided. © 2019 by the authors.