Software reliability is a critical metric for determining the readiness and quality of software products before release. In this study, a software reliability growth model (SRGM) is proposed that integrates imperfect debugging and fault removal efficiency to better reflect real‐world testing environments. The model accounts for the possibility of introducing new faults during debugging and adjusts the fault removal process based on the testing team's efficiency and learning progression of the testing team. Furthermore, an optimal software release time is derived by considering various costs, including testing, debugging, warranty, and reputation, with the required reliability levels. The proposed model is validated using two widely adopted datasets, demonstrating consistently superior performance compared to several existing models. This model offers a valuable tool for researchers in software reliability, providing a more accurate representation of debugging processes, and facilitating more informed decisions regarding optimal software release timing.