ABSTRACT This paper makes a game-theoretic analysis of an M/M/1 queue with variable vacation and vacation interruptions. The Nash equilibrium mixed strategy and social utility maximization are derived based on a non-cooperative game theory and an optimization theory under different information precision levels, namely almost unobservable and fully unobservable cases. The explicit solutions of the entrance probabilities and the steady-state probability distribution of the system are investigated using the probability generating function and nonhomogeneous linear difference equations. Furthermore, the effects of the information levels and diverse system parameters on the equilibrium strategies, the arrival rates, and the expected benefits are explicitly illustrated by numerical comparisons. The research results can provide a theoretical basis and performance analysis tool for the optimal design in the wireless transmission and network communication system.