Although degradation modeling has been widely applied to use multiple sensor signals to monitor the degradation process and predict the remaining useful lifetime (RUL) of operating machinery units, three challenging issues remain. One challenge is that units in engineering cases usually work under multiple operational conditions, causing the distribution of sensor signals to vary over conditions. It remains unexplored to characterize time-varying conditions as a distribution shift problem. The second challenge is that sensor signal fusion and degradation status modeling are separated into two independent steps in most of the existing methods, which ignores the intrinsic correlation between the two parts. The last challenge is how to find an accurate health index (HI) of units using previous knowledge of degradation. To tackle these issues, this article proposes an adaptation-aware interactive learning (AAIL) approach for degradation modeling. First, a condition-invariant HI is developed to handle time-varying operation conditions. Second, an interactive framework based on the fusion and degradation model is constructed, which naturally integrates a supervised learner and an unsupervised learner. To estimate the model parameters of AAIL, we propose an interactive training algorithm that shares learned degradation and fusion information during the model training process. A case study that uses the degradation data set of aircraft engines demonstrates that the proposed AAIL outperforms related benchmark methods.