This paper presents a new scheme for fault detection and isolation in the satellite system. The purpose of this paper is to develop a fault detection, isolation and diagnosis algorithm based on the bank of interacting multiple model (IMM) filter for both total and partial faults in a satellite attitude control system (ACS). In this paper, IMM are utilized for detection and diagnosis of anticipated actuator faults in a satellite ACS. Other fault detection, isolation (FDI) schemes using conventional IMM are compared with the proposed FDI scheme. The FDI procedure is developed in two stages. In the first stage, 11 EKFs actuator fault models are designed to detect wherever actuator faults occur. In the second stage of the FDI scheme, two filters are designed to identify the fault type which is either the total or partial fault. An important feature of the proposed FDI scheme can decrease fault isolation time and figure out not only fault detection and isolation but also fault type identification.