As the technologies of electronic device have advanced these days, most of mechanical systems are designed with electronic control unit to take advantage of control parameter adaption to operating conditions and firmware flexibilities as well. On-board diagnosis, which detects the system malfunction and identifies potential source of error with its own diagnostic criteria, and fail-safe that can switch the mode of operation in view of recognized error characteristics enables easy maintenance and troubleshooting as well as system protection. This paper dealt with the development of diagnosis and fail-safe function for proportional flow control valve. All type of errors related to valve control system components are investigated and assigned to a specific hexadecimal codes. Cumulative error detection algorithm is applied in order for the sensitivity and reliability to be appropriate. Embedded simulator which runs simultaneously with system program provides the virtual error simulation environment for expeditious development of error detection algorithm. The diagnosis function was verified both with solenoid valve and embedded simulator test and it will enhance the valve control system monitoring function.