Integrity planning methods and inline inspection (ILI) tool performance have a great impact on a pipeline integrity management program. In pipeline integrity planning, risk and integrity assessments are performed to schedule integrity activities like ILI for the purpose of reducing risks and ensuring reliable and safe operations. In this paper, a method is developed for analyzing the impact of ILI tool accuracy on pipeline integrity planning, which is of great importance but has not been systematically studied before. Crack inspection and threat of fatigue cracking are used as the working case for the analysis, although the approach could potentially be used for any pipeline threat type. The Paris' law degradation model is used for the crack growth and subsequent severity and risk assessment. We investigated the impact of ILI tool accuracy on the cost rate, as well as the associated inspection intervals. The impact on long-term cost rate was also investigated considering new defect generation and continuous growth. Sensitivity analyses were performed. The optimal inspection intervals and the corresponding total cost rates with respect to different ILI tool accuracy and different input parameters were obtained and compared. The proposed method can support integrity management program planning by linking risks with integrity plan costs associated with ILI accuracy and optimal re-assessment intervals. The contributions of this paper mainly include the investigation of the problem of how ILI tool accuracy impacts integrity planning, the development of the method for analyzing pipelines with cracks, and the verification and validation with the examples.