Recently authors have proposed a new method to estimate failure strength of a pipe with local wall thinning subject to either internal pressure or global bending. The proposed method was based on the equivalent stress averaged over the minimum ligament in the locally wall thinned region, and the simple scheme to estimate the equivalent stress in the minimum ligament was proposed, based on the reference stress concept. This paper extends the new method to combined internal pressure and global bending. The proposed method is validated against FE results for various geometries of local wall thinning under combined loading. The effect of internal pressure is also investigated in the present study. Comparison of maximum moments, predicted according to the proposed method, with published full-scale pipe test data fur locally wall-thinned pipes under combined internal pressure and global bending, shows good agreement.