In this work, a neuro-fuzzy inference system combined with the wavelet denoising, PCA (principal component analysis) and SPRT (sequential probability ratio test) methods is developed to detect the relevant sensor failure using other sensor signals. The wavelet denoising technique is applied to remove noise components in input signals into the neuro-fuzzy system The PCA is used to reduce the dimension of an input space without losing a significant amount of information. The PCA makes easy the selection of the input signals into the neuro-fuzzy system. Also, a lower dimensional input space usually reduces the time necessary to train a neuro-fuzzy system. The parameters of the neuro-fuzzy inference system which estimates the relevant sensor signal are optimized by a genetic algorithm and a least-squares algorithm. The residuals between the estimated signals and the measured signals are used to detect whether the sensors are failed or not. The SPRT is used in this failure detection algorithm. The proposed sensor-monitoring algorithm was verified through applications to the pressurizer water level and the hot-leg flowrate sensors in pressurized water reactors.