For the purpose of monitoring by ultrasonic test of the ball bearing conditions in rotating machinery, a system for their diagnosis was developed. ultrasonic technique is used to detect abnormal conditions in the bearing system. And various data such as frequency spectrum, energy and amplitude of ultrasonic signals, and ultrasonic parameters were acquired during experiments with the simulated ball bearing system. Based on the above results and practical application for power plant, algorithms and judgement criteria for diagnosis system was established. Bearing diagnosis system is composed of four parts as follows : sensing part for ultrasonic sensor and preamplifier, signal processing part for measuring frequency spectrum, energy and amplitude, interface part for connecting ultrasonic signal to PC using A/D converter, graphic display and software part for display of bearing condition and for managing of diagnosis program.