On-line monitoring of fault discharge is an important approach for indicating the condition of electrical insulation of stator winding in high voltage motor. In this paper, several key aspects of on-line monitoring system are discussed, involving the characteristics of fault discharge of stator winding in high voltage motor, spectrum analysis of four simulation fault signals, feature extraction of internal fault discharge from apply voltage to breakdown. The study of the partial discharge activities allows to highlight the ageing stage in the winding fault under test. During the life of the winding insulation fault, the shape of PD signal change relating to the ageing stage. The ageing of stator winding insulation fault of high voltage motor is investigated based on the characteristics of partial discharge pulse distribution and statistical parameters, such as maximum, skewness and kurtosis using discrete wavelet trnasform coefficients.