In this paper, we propose effective diagnosis algorithm for hub bearing fault in driving vehicle using acceleration signal and wheel speed signal measured in hub bearing unit or knuckle. This algorithm consists of differential, envelope and power spectrum method. We developed diagnosis system for realizing proposed algorithm. This system consists of input device including acceleration sensor and wheel speed sensor, calculation device using Digital Signal Processor (DSP) and display device using Personal Digital Assistant (PDA). Using this diagnosis system, a driver can see hub bearing fault(flaking) from the vibration in driving vehicle. With early repairing, he can keep good ride feeling and prevent accident of vehicle resulting from hub bearing fault.