The regeneration of complex capital goods is dominated by manual labor and experience-based decisions about machining measures. The functional condition, which describes how well a part performs its task, is unknown before and after regeneration. Instead, the target geometries for the regeneration are based on continuity constraints and subjective assessments. In this study, a new type of process chain for condition- based regeneration is developed that selects the machining measures based on the achievable functional condition, the production effort as well as customer requirements. This allows a targeted and efficient decision on a regeneration process based on the customer requirements for the functional condition. A proof-of-concept process chain was successfully built to demonstrate the feasibility of this novel approach. It was shown that the concept is realizable with currently available technologies and that the functional assessment has minor influence on the regeneration time.