Variable geometry gas turbines are susceptible to various malfunctions and performance deterioration phenomena, such as variable inlet guide vane (VIGV) drift, compressor fouling, and high inlet air temperatures. The present study investigates the combined effect of these performance deterioration phenomena on the health and overall performance of a three-shaft gas turbine engine (GE LM1600). For this purpose, a steady-state simulation model of the turbine was developed using a commercial software named GasTurb 12. In addition, the effect of an inlet air cooling (IAC) technique on the gas turbine performance was examined. The design point results were validated using literature results and data from the manufacturer’s catalog. The gas turbine exhibited significant deterioration in power output and thermal efficiency by 21.09% and 7.92%, respectively, due to the augmented high inlet air temperature and fouling. However, the integration of the inlet air cooling technique helped in improving the power output, thermal efficiency, and surge margin by 29.67%, 7.38%, 32.84%, respectively. Additionally, the specific fuel consumption (SFC) was reduced by 6.88%. The VIGV down-drift schedule has also resulted in improved power output, thermal efficiency, and the surge margin by 14.53%, 5.55%, and 32.08%, respectively, while the SFC decreased by 5.23%. The current model can assist in troubleshooting the root cause of performance degradation and surging in an engine faced with VIGV drift and fouling simultaneously. Moreover, the combined study also indicated the optimum schedule during VIGV drift and fouling for performance improvement via the IAC technique.