Hydrostatic pressure tests on pipelines have been found to be an inadequate means of critical integrity management due to the frequency of false negatives, which result from the inability of these tests to detect crack growth. It can be argued that focusing on pipe leakage does not guarantee future operability. A study presents a failure assessment methodology based on the failure assessment diagram (FAD), which aims to predict crack growth during hydrotesting. The calibrated pipe spool is validated by the application of data from hydrostatic tests and analytical techniques to ascertain the potential growth in circumferential surface cracks. A variety of factors, including pressure, material grades, flaw dimensions, and elliptical flaw angles, were examined in an effort to assess cracks. The results demonstrate that there is no pipeline leakage and minimal trapped air. Despite its location within the plastic zone, with a normalized pressure index of ≤1, the pipeline is deemed to be within acceptable limits according to the criteria established by the FAD. The assessment point was found to be predominantly influenced by the toughness ratio of the material grade. The crack propagated in the opposite direction with a maximum length a/c= 0.125 and a crack depth a/t= 0.2, which limited the toughness ratio. The load ratio indicates uniformity in elliptical angle flaw results. In this simplified failure assessment, the parameter describing the flaw size, which exhibits a strong correlation with the toughness ratio, plays a pivotal role. Further research and recommendations are also proposed.