A wireless acoustic emission (AE) system has been developed for continuous monitoring of rotating structures such as turbine rotors. The cable between preamplifier and signal processing unit of a conventional AE system was replaced by the frequency modulated telemetry. The detected signals were modulated and transmitted as an RF signals by the transmitting module, then received and demodulated by the receiving module. The distance between the transmitting and the receiving antennas could be separated up to 10cm within a reasonable signal-to-noise ratio. The simulated AE signals generated by pencil lead breaks from rotating structures were successfully detected using the developed wireless AE monitoring system.