As the increasing of capacity and technology of power facilities, rotating machines such as turbine generators and water turbines are getting higher at capacity but smaller in size. Thus the monitoring and diagnosis of generators for fault detection and protection has attracted intensive interest. Most of electrical faults of rotating machines appear in their windings. In case of an after-fault in high capacity rotating machines, the recovering cost is usually very expensive and additional time is necessary for returning in a normal situation. In this paper, the magnetic flux patterns in air-gap of a generator under various fault states as well as a normal state are simulated by a conventional FEM tool. These results are successfully applied to detection and diagnosis of the short-circuit condition in rotor windings of a high capacity generator.