Diagnosis and repair tasks of an unbalanced rigid rotor reduce the chances of unexpected failure and the consequent losses in production, time, and money. This paper presents investigation of a balancing system for equilibration of rigid rotor unbalance. A practical vibration signal based method is developed for unbalance diagnosis using wavelet technology and a Lissajous diagram. This paper shows that a mass unbalance can be efficiently estimated through an appropriate narrow-band filter used to extract the required spectra component. The wavelet technology is used to design specified narrow filter bank. A modified Lissajous diagram is also introduced with statistical analysis to compute the phase position. Several experimental tests demonstrate the effectiveness in balancing the mass unbalance of a rigid rotor.