A new Type-II generalized progressively hybrid censoring strategy, in which the experiment is ensured to stop at a specified time, is explored when the lifetime model of the test subjects follows a two-parameter alpha-power inverted exponential (Alpha-PIE) distribution. Alpha-PIE’s parameters and reliability indices, such as reliability and hazard rate functions, are estimated via maximum likelihood and Bayes estimation methodologies in the presence of the proposed censored data. The estimated confidence intervals of the unknown quantities are created using the normal approximation of the acquired classical estimators. The Bayesian estimators are also produced using independent gamma density priors under symmetrical (squared-error) loss. The Bayes’ estimators and their associated highest posterior density intervals cannot be calculated theoretically since the joint likelihood function is derived in a complicated form, but they can potentially be assessed using Monte Carlo Markov-chain algorithms. We next go through four optimality criteria for identifying the best progressive design. The effectiveness of the suggested estimation procedures is assessed using Monte Carlo comparisons, and certain recommendations are offered. Ultimately, two different applications, one focused on the failure times of electronic tubes and the other on vinyl chloride, are analyzed to illustrate the effectiveness of the proposed techniques that may be employed in real-world scenarios.