A new probabilistic analytical approach to evaluate seismic system reliability of large lifeline systems is presented in this paper. The algorithm takes the shortest path from the source to the terminal of a node weight or edge weight network as decomposition policy, using the Boolean laws of set operation and probabilistic operation principal, a recursive decomposition process then could be constructed. For a general weight network, the modied Torrieri method (NTR=T method) is introduced to combine with the suggested algorithm. Therefore, the recursive decomposition algorithm may be applied to evaluate the seismic reliability of general lifeline systems. A series of case studies, including a practical district electric power network system and a large urban water supply system, show that the suggested algorithm supplies a useful probabilistic analysis means for the seismic reliability evaluation of large lifeline systems.