The fault detection and diagnosis of rotating machinery widely used in plants including the ship are important for maintaining the performance of Plants. Recently, the wavelet transform has been recognized an efficient method to detect a little variation of physical quantities by the synchronous localization of time and frequency domains using the translation and dilation of signals. In this Paper, In order to develop efficient and reliable fault detection and diagnosis system rotating machines, the performance of wavelet transformation to detect a little variation of machine status and neural network to diagnose the cause of machine faults are investigated and experimented.