Scaling of CMOS technology into nanometric feature sizes has raised concerns for the reliable operation of logic circuits such as in the presence of soft errors. This paper deals with the analysis of the operation of sequential circuits. As the feedback signals in a sequential circuit can be logically masked by specific combinations of primary inputs, the cumulative effects of soft errors can be eliminated. This phenomenon, referred to as error masking, is related to the presence of so-called restoring inputs and/or the consecutive presence of specific inputs in multiple clock cycles (equivalent to a synchronizing sequence in switching theory). In this paper, error masking is extensively analyzed using the operations of state transition matrices (STMs) and binary decision diagrams (BDDs) of a finite state machine (FSM) model. The characteristics of the state transitions with respect to the correlation between the restoring inputs and the time sequence are mathematically established using STMs; although the applicability of the STM analysis is restricted due to its complexity, the BDD approach is more efficient and scalable for use in the analysis of large circuits. These results are supported by simulations of benchmark circuits and may provide a basis for further devising efficient and robust implementation when designing FSMs.